Bandhan Financial Holding-led consortium has entered into a definitive agreement to acquire IDFC Asset Management Company and IDFC AMC Trustee Company for ₹4,500 crore, subject to receipt of necessary regulatory approvals, an official said on Wednesday. Bandhan Financial Holding is the holding company of private sector lender Bandhan Bank.
The consortium led by it also includes private equity firm ChrysCapital and Singapore's sovereign fund GIC.
In the consortium, the equity pattern is 60% for Bandhan Financial Holding and 20% each for the other two partners.
The Bandhan-led consortium was selected through a “highly competitive divestment process which witnessed strong participation from strategic players and financial investors.”
Karni S. Arha, managing director of Bandhan Financial Holdings, said, “We are going into asset management as we want to have a complete bouquet of banking and financial services and not just banking.” Officials said the MF may be renamed Bandhan MF after being finally and formally taken over.
Bandhan Bank itself sells products from some 8-10 mutual funds. However, the group did not clarify how it would market the products of IDFC MF once it takes over after regulatory permission from SEBI and RBI.
