Content creators mean business
Social media influencers are flipping the rules by first getting followers and then launching products and ...
Muthoot Finance, one of the largest gold loan non-banking finance company, has signed a definitive agreement to acquire IDBI Asset Management and IDBI MF Trustee Company for Rs 215 crore.
The deal, which will pave way for Muthoot Finance’s entry into Mutual Fund Asset Management space, is expected to be completed by February end.
IDBI Bank was looking to sell its stake in mutual fund arm ever since LIC bought majority stake in the debt-laden bank in January. The proposal was approved by the Union Cabinet last August.
The sale of the mutual fund business by IDBI Bank was necessitated as the bank’s new owner, LIC, has its own mutual fund business and regulators were not in favour of letting them run the same business under two different entities.
Upon closing of the deal, both IDBI AMC and IDBI MF Trustee Company will become wholly-owned subsidiary companies of Muthoot Finance.
Promoted by IDBI Bank in 2010, IDBI Mutual Fund is one of the profit making AMCs in the mutual fund space with an asset under management of about Rs 5,300 crore.
IDBI MF runs 22 schemes with robust AUM across products.
On completion of the transaction, Muthoot Finance will purchase entire equity shares of IDBI Asset Management and IDBI MF Trustee Company for a total consideration of Rs 215 crore, said Muthoot Finance in a statement on Friday.
The proposed transaction has been approved by the Board of Directors of Muthoot Finance and IDBI MF, it added.
ICICI Securities and J Sagar Associates acted as the advisors to IDBI MF in the transaction while AZB and Partners was legal advisor to Muthoot Finance.
George Alexander Muthoot, Managing Director, Muthoot Finance said the business objectives and customer centric approach followed within Muthoot Group is well aligned with the objectives of mutual fund industry.
"We are excited to venture into this new path in the financial services space and partner with experienced management team at IDBI Mutual Fund," he added.
Started in 1939, Muthoot Finance, a “systemically important Non-Deposit Taking NBFC”, is the largest gold loan NBFC in India with history of over 80 years.
It has a branch network of over 4,500 across 23 states and serves about 2 lakh retail customers every day for Gold loans and other products
It has loan assets of Rs 34,246 crore as at March 31, 2019 and it generated net profit of Rs 1,972 crore for FY'19.
Social media influencers are flipping the rules by first getting followers and then launching products and ...
Paneer, once alien to the South, has found a lucrative market in Chennai
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Carriers claim that all measures — including pre-flight tests, cabin sanitisation and fresh air inflow — have ...
What filters should you apply when mining for under-the-radar small-cap stocks? Read on to find more
High valuation, intensely competitive landscape and small cap nature of the stock are key risks.
Amid choppiness, the benchmark indices slipped marginally; approach the week with caution
SBI Cards (₹1,032.7): Witnesses fresh breakoutBetween September and December last year, the stock of SBI Cards ...
A virus swept aside 2020 plans to mark the 250th year of the birth of Beethoven. We need the German composer’s ...
Former MLA and farmer leader VM Singh on the violence that followed the January 26 tractor rally, the impasse ...
A mysterious new exhibit has been the centre of attraction at the gallery of Modern Art. This art work has ...
Tara was a curious little girl who loved to ask questions.She lived with her parents and her grandmother — ...
Social media influencers are flipping the rules by first getting followers and then launching products and ...
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Paneer, once alien to the South, has found a lucrative market in Chennai
The Flipkart kids playing adults are back — this time to push the home grown e-commerce marketplace’s grocery ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor