The boards of directors of IDFC Ltd and IDFC Financial Holding Company have approved the sale of the entire shareholding of IDFC AMC and IDFC AMC Trustee held by IDFC FHCL to a consortium comprising Bandhan Financial Holding Ltd, Lathe Investment Pte Ltd (affiliate of GIC) Tangerine Investments and Infinity Partners (affiliates of ChrysCapital) for a proposed consideration of ₹4,500 crore.

The proposed transaction will be completed upon receipt of requisite regulatory and other approvals, as applicable, and completion of closing related actions mutually agree between the parties, IDFC said in a regulatory filing to stock exchanges on Wednesday. 

While BFHL will hold 60 per cent, GIC and ChrysCapital will each hold 20 per cent each in the AMC.

According to Karni S Arha, MD, Bandhan Financial Holdings, the acquisition fits with what Bandhan group endeavors to do, that is to be a holistic financial services group. BFHL will also look at other financial services businesses as permitted within the guideline such as asset management business, insurance business including life and general among others. 

BFHL is also one of the resolution applicants for Reliance Nippon Life Insurance.

“The asset management industry has been doing very well over the past 10 years and growing at around 16-17 per cent. There has been quite a bit of activity and consolidation. It (acquisition) fits with what Bandhan group endeavors to do. We want to explore other financial services and we will continue this journey,” Arha said.

IDFC AMC has assets under management worth ₹1.25 lakh crore.

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