Blackstone is believed to have emerged as the top bidder for the acquisition of India-based L&T Mutual Fund, reported Economic Times, citing sources.

IIFL Wealth is also claimed to be another bidder of the L&T Mutual Fund, which has assets worth Rs710bn ($9.3bn) under management.

IIFL Wealth has enlisted the help of Axis Capital with financing options for its bid.

Blackstone, on the other hand, has teamed up with law firm Cyril Amarchand Mangaldas to bolster its case before SEBI, the securities market regulator.

L&T Finance owns L&T Mutual  and it is expecting about Rs45bn ($590m) from the sale of the mutual fund business.

However, Blackstone’s bid is reportedly around Rs30bn ($393m).

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IIFL Wealth has reportedly quoted Rs26.5bn ($347m) for the mutual fund business.

Blackstone has bid for more than 60% stake acquisition in L&T Mutual business, added the publication citing sources.

“Sebi has not allowed private equity firms to acquire an Indian AMC as it insists on a five-year track record as an asset manager in the country,” said one of the sources to the publication.

Private equity firms can only own 39.9% interest in mutual business.

This sale comes as L&T intends to commit up to Rs100bn ($1.3bn) in L&T Finance for a proposed rights issue later in 2020.