The consortium led by Bandhan Financial Holding has reached a definitive agreement to acquire IDFC Asset Management Company and IDFC AMC Trustee Company for ₹4,500 crore, subject to obtaining necessary regulatory approvals, an official said on Wednesday. Bandhan Financial Holding is the holding company of private lender Bandhan Bank.
The consortium he leads also includes private equity firm ChrysCapital and Singapore’s sovereign wealth fund GIC.
In the consortium, the equity structure is 60% for Bandhan Financial Holding and 20% each for the other two partners.
The Bandhan-led consortium was selected through a “hard-fought divestment process that saw strong participation from strategic players and financial investors.”
Karni S. Arha, chief executive officer of Bandhan Financial Holdings, said, “We are going into wealth management as we want to have a full range of banking and financial services and not just banking.” Officials said the MF could be renamed Bandhan MF , after it was finally and officially adopted.
Bandhan Bank itself sells products from about 8-10 mutual funds. However, the group has not made clear how it will commercialize IDFC MF’s products once it makes the acquisition following regulatory approval from SEBI and RBI.
