India-based mortgage lender Indiabulls Housing Finance has secured regulatory approval from the country’s competition commission to offload its mutual fund business.
The firm is offloading the business to stockbroker and depository participant Nextbillion Technology (Groww) for INR175m.
The deal was signed by the company’s fully-owned subsidiaries Indiabulls Asset Management Company (IMACL) and Indiabulls Trustee Company (ITCL) with Groww in May this year.
It is part of Indiabulls’ plan to strengthen the focus on its retail estate asset management business. The mutual fund business, which is part of the company’s non-core businesses, constituted 0.03% of its consolidated revenue as of 31 March 2020.
Bengaluru-headquartered Groww launched its financial service business in 2016. It allows investors to invest in stocks and mutual funds.
It is registered with Association of Mutual Funds in India as a mutual funds distributor.
The proposed acquisition would mark the entry of Groww to the asset management space of managing mutual fund schemes.
The transaction is expected to be concluded on or before 30 June 2022.
Recent moves by Indian firms
Earlier this month, India-based invest-tech platform dezer raked in $7m in a seed funding round to grow its team as well as launch and expand investment technology platform.
The Economic Times reported recently that HSBC is in talks to purchase L&T Finance’s mutual fund arm, L&T Mutual Fund, to bolster its asset management business in India.
Last month, Bajaj Finserv secured regulatory approval to set up a mutual fund business.
The Securities and Exchange Board of India (SEBI) granted in-principal nod for the firm for sponsoring a mutual fund.