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Sundaram Asset Management Company, a wholly-owned a subsidiary of Sundaram Finance, has received regulatory approval for the purchase of the asset management businesses of Principal Asset Management.
Sundaram will acquire the schemes managed by Principal India and acquire the entire share capital of Principal Asset Management, Principal Trustee Company and Principal Retirement Advisors.
The deal was announced on January 28.
The transaction is subject to compliance with SEBI prescribed processes and fulfillment of mutually agreed conditions precedent to deal closure.
Exit load free window
As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments, where such exit load is applicable.
Post deal closure, the schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories.
Sunil Subramaniam, Managing Director, Sundaram Asset Management Company said the entire distribution franchise of Principal will be absorbed for minimal disruption to their commercial terms.
The existence of the same back-office service provider is expected to smoothen the transition for existing customers and distributors, he added.
Harsha Viji, Executive Vice-Chairman, Sundaram Finance said the combined business of both the entities will achieve an aspirational landmark of ₹50,000 crore.
The focus for us will be on delivering a better experience to investors and distribution partners, he said.
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