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US-based Mission1 Investments LLC will pick up 23 per cent in Shriram Asset Management Company Ltd (Shriram AMC) for about Rs 35 crore.
The Board of Shriram AMC, at a meeting held on February 2, approved the investment by Mission 1, which will subscribe to compulsorily convertible debentures (CCDs) and warrants within 18 months at a conversion price of Rs 124.30 per share, a premium of 24 per cent over Tuesday’s closing price, according to a statement.
Investment firm Mission1 Investments LLC’s owners include veteran investors Gaurav Patankar, Amit Rajpal and Eric Wetlaufer, among others. Together, the team has 120+ years of executive and investment experience across global markets.
“The move to bring in Mission1 as an investor into Shriram AMC is part of the Group’s strategy to energise all the businesses in its portfolio. Financialisation of savings and building retirement security is a large and exciting opportunity-set in India, especially at the bottom of the pyramid,” it added.
Shriram Credit Company Ltd, the promoter of Shriram AMC, will invest a further Rs 50 crore into the AMC business by compulsorily convertible preference shares (CCPs) at the same conversion price of Rs 124.30 each. The transaction is subject to approval by the market regulators.
“The Shriram Group is fully committed to reinvigorating the Mutual Fund business. Towards this, we are bringing investors who are growth conscious and aligned with the Group’s passion for responsible growth and impact at the bottom of the pyramid,” said Akhilesh Singh, Vice Chairman, Shriram Credit Company Ltd.
Shriram Credit currently owns 68.67 per cent of Shriram AMC.’S paid-up capital. This will come down to 62.55 per cent post-conversion.
“Successful investing and wealth creation should not be an exclusive preserve of the top 1% of society and by investing in Shriram Asset Management Company, we hope to help level the field via a new-age client-centric platform that can create scalable, customisable and low-friction investment solutions,” Gaurav Patankar & Eric Wetlaufer on behalf of Mission1 Investments LLC said in the statement.
Shriram AMC will now focus on manufacturing transparent, thematic and blended approaches using quantitative techniques, mathematical models and human insight, thus offering investment solutions focused on the end consumer.
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