HSBC Asset Management (India) Private Ltd, an indirect wholly-owned subsidiary of HSBC Holdings plc, has received the approval of Securities and Exchange Board of India (SEBI) to acquire L&T Investment Management Ltd, subject to certain conditions and approval.
Post completion of the acquisition, HSBC will merge the operations of L&T Investment Management with its existing asset management business, which has average assets under management of ₹13,620 crore as of September 2022.
L&T Investment Management is a wholly-owned subsidiary of L&T Finance Holdings Ltd and the investment manager of L&T Mutual Fund.
With average assets under management of ₹71,703 crore and over 22 lakh active folios as of September 2022, it is currently the 14th largest mutual fund management company.
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“Strengthening HSBC’s asset management business in India will add to its ability to serve the wealth needs of its customers in India as well as those of its growing non-resident Indian customer base across the world,” HSBC said in a release.
The mutual fund schemes operated by L&T Mutual Fund will be transferred, merged or consolidated with identified schemes of HSBC Mutual Fund or vice-versa. Further, the sponsorship, trusteeship, management, and administration of L&T Mutual Fund will be accordingly changed, it said.
In December 2021, HSBC Holdings Plc’s Indian asset management unit had announced buying out the mutual fund unit of L&T Finance Holdings Ltd for ₹3,191 crore to bolster its wealth management business. The proposed deal secured the approval of the Competition Commission of India (CCI) in March 2022.