Muthoot Finance, a gold financing firm, is set to enter the mutual fund asset management space in India with new acquisitions.
The company has signed a share purchase agreement to acquire IDBI Asset Management and IDBI MF Trustee Company. Muthoot Finance will purchase all equity shares of the two firms from IDBI Bank and its units for a consideration of INR2.15bn ($30.01m).
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Upon deal completion in the end of next February, both the acquired firms will operate as wholly owned subsidiary firms of Muthoot Finance.
Muthoot Finance managing director George Alexander Muthoot said: “Mutual Fund is a trusted player in the mutual fund space with a steady loyal customer base.
“At Muthoot we pride ourselves in venturing into mutual fund space through such an established player.
“The business objectives and customer centric approach that we follow within Muthoot Group is well aligned with the business objectives of mutual fund industry.”
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By GlobalDataFounded by IDBI Bank in 2010, IDBI Mutual Fund manages 22 schemes with nearly INR53bn in assets under management.
The acquisition has already received the green light from the companies’ boards. It is currently subject to regulatory nod.
A non-banking financial services firm based in India, Muthoot Finance primarily offers gold financing services. It is also into money transfer, foreign exchange and insurance businesses, and operates more than 4,500 branches across the country.
