Capital market regulator SEBI has granted approval to IndusInd International Holdings for acquiring the portfolio management services business of Invesco AMC.

SEBI’s approval marks the completion of a crucial phase in IIHL’s 60 per cent acquisition of Invesco AMC and leaves only one final regulatory approval before the transaction can be completed, sources said.

An application seeking SEBI’s go-ahead for grant of sponsor approval to IIHL is in process and upon receipt, IIHL will proceed to complete the transaction, he added.

The Competition Commission of India has already granted approval to IIHL for acquiring 60 per cent shareholding each in Invesco Asset Management (India) and Invesco Trustee. IIHL will be holding the investment through its wholly owned and controlled subsidiary.

Transforming into BFSI major

The approval follows IIHL’s strategy of transforming itself into a BFSI major. The company had earlier bid for acquisition of Reliance Capital and its subsidiaries that operate in the life insurance, health and general insurance, asset reconstruction, research and securities broking. IIHL’s resolution plan has been approved by the National Company Law Tribunal.

Invesco Asset Management began its India operations in 2008 with the acquisition of Lotus India AMC. Since then, it has grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors as of April, with over 70 per cent of its asset under management in the equity and equity-oriented assets.

It is the fifth largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of ₹85,400 crore as of March-end, and a presence in 40 cities.

Published on August 29, 2024