Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has agreed to acquire Goldman Sachs Asset Management’s (GSAM) onshore asset management business in India for INR2.43bn ($37.5m) in cash.

Under the deal, RCAM will purchase all onshore mutual fund schemes, including exchange traded funds, of GSAM India.

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The transaction, which has been approved by the boards of the two companies, is scheduled to close by the end of this fiscal year, subject to necessary regulatory approvals.

The acquisition will see RCam extending employment offers to all of GSAM India’s employees dedicated to supporting the ETF business.

Reliance Capital executive director Sam Ghosh said: "This acquisition by RCAM is an important first step in our overall strategy to strengthen our businesses through selective inorganic growth. GSAM India has a strong bouquet of schemes and a talented team."

Goldman Sachs India chairman Sonjoy Chatterjee said: "We are pleased to have reached an agreement on the transfer of our onshore funds to RCAM. GSAM will continue to deliver global asset management services to Indian clients and will remain a significant investor in Indian securities through regional and global managed GSAM funds. "

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RCAM CEO Sundeep Sikka said: "The transaction will add over half a percent in our market share. We will ensure that we maintain seamless continuity for all GSAM India fund investors across all schemes. Going forward we would be willing to consider more such acquisitions that add to our strength and complement our portfolio."

GSAM India currently manages 12 mutual fund schemes, including 10 ETF schemes with total AUM of INR7.13bn (US$ 1.1bn) as of 30 September 2015.