Invesco plans to exit MF business in India
Invesco, which oversees investments of about Rs 86,000 crore in India, has signed an option deal to sell its remaining 40% stake in the local mutual fund business to Hinduja Group-owned IndusInd International Holdings (IIHL) as part of a broader plan to exit an increasingly competitive geography for foreign players, two people familiar with the deal said.
On Tuesday, it announced the sale of a 60% stake in Invesco Asset Management India to IIHL.
Invesco AMC Valuation at Rs 2,500 cr
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-109205104»> IIHL — the Mauritius-based investment company of the mobility-to-chemicals conglomerate that owns IndusInd Bank and Anil Ambani-promoted Reliance Capital, which it bought recently in a bankruptcy resolution — has valued Invesco Asset Management India at Rs 2,100-2,500 crore.
Invesco can exercise the put option to sell all of its 40% in the India mutual fund unit over the next three years, the people said. However, the sale cannot be made in the next 18 months due to a lock-in clause.
As and when Invesco exercises the sale option, the US major, which manages assets worth $1.6 trillion worldwide, will join its Wall Street peers, such as Goldman Sachs, Morgan Stanley and Fidelity, in exiting the mutual fund business in Asia's third-biggest economy. Japan's Nippon is at present the biggest foreign mutual fund manager in India, where asset management is dominated by fund houses of the State Bank of India and HDFC Bank.
After the exit,
