Companies

L &T Finance to buy Chola MF business

Cholamandalam DBS Finance Limited (CDFL) has exited the mutual fund business. It has sold its subsidiary DBS Cholamandalam Asset Management Limited (DCAM) to L&T Finance Limited (LTF) for a total consideration of Rs. 45 crore. The buy will help L&T Finance get into the asset management business. Edelweiss Capital is the sole advisor to CDFL for the transaction. L&T was advised by Equirus Capital.

Consummation of the transaction is subject to the required regulatory approvals to be obtained.

According to N. Srinivasan, Director of CDFL, the company has decided focus on its core business of non-banking finance and hence decided to pull out of mutual fund field. Mr. Srinivasan expected the transaction to be completed within two-three months.

Founded in 1996, DCAM has assets under management worth Rs. 2,900 crore across 24 schemes. “Considering our own longer-term vision for core businesses, we have decided to exit the asset management business,” Mr. Srinivasan said.

Cholamandalam Investment & Finance Company Limited (CIFCL) was incorporated in 1978 as the financial services arm of the Murugappa Group. In 2005, post-the joint venture partnership between the Murugappa Group and DBS Bank of Singapore, the company was renamed Cholamandalam DBS Finance Limited (CDFL).

The company that commenced business as an equipment financing company has now emerged as a comprehensive financial services solution provider that offers vehicle finance, business finance, home equity loans, mutual funds, stock broking and distribution of financial products to its customers.

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Printable version | Nov 29, 2020 1:57:07 AM | https://www.thehindu.com/business/companies/L-ampT-Finance-to-buy-Chola-MF-business/article16883490.ece

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