MUMBAI: Hinduja Group has bought a 60 percent stake in Indian asset manager Invisco’s mutual fund, giving it a boost as the joint venture between Geo Financial Financial Services and BlackRock prepares to revolutionize the market. It commemorates this company’s entry into the industry.
The move comes after the bank-turned-automaker secured court approval to buy Reliance Capital and its subsidiaries in life insurance, health insurance, non-life insurance, research, stock brokerage and asset reconstruction. next Hinduja and Invisco did not announce the deal. However, following the deal, the US company said it would retain a 40% stake in the investment fund unit.
Invesco entered the country’s MF industry in 2012 by acquiring a stake in Religare Asset Management and is currently the fifth largest foreign company. It manages assets worth Rs 85,393 crore. The company acquired 49% stake in Religare for Rs 460 million and bought the remaining 51% four years later.
Hinduja Group facilitated the transaction through its Mauritian subsidiary IndusInd International Holdings (IIHL). In November 2023, IIHL chairman Ashok Hinduja told TOI that the company had a gap in its financial services BUSINESS, including mutual funds, and planned to fill it through acquisitions.
IIHL has over 600 shareholders and owns IndusInd Bank and Reliance Capital in India, Sterling Bank and Trust in the Bahamas, Afrinex Exchange in Mauritius and Beryllus Capital in the UK, Switzerland and Singapore.
Subsequently, Hinduja said that many shareholders wanted to exit IIHL and planned to conduct an IPO of IIHL in foreign jurisdictions.
“This is another step towards creating value for our shareholders. It was our vision to transform IIHL into a BFSI powerhouse,” Hinduja said after signing the agreement with Invesco on Tuesday.
Invesco is selling majority stake in its mutual funds division in India and is looking for a domestic partner with a strong distribution network. The local unit is also under investigation by market regulator Sebi for allegedly violating mutual fund regulations.
Saurabh Nanavati, managing director of Invesco Asset Management India, said “strong domestic partners” will enhance the company’s ability to expand into more cities and towns in India, which will drive the industry’s growth.
In 2023, both Invesco and IIHL had expressed interest in buying IDFC Mutual Fund but lost out to a consortium led by Bandhan Financial. The contract with IIHL excludes Invesco’s Business Support Service Center in Hyderabad, which employs more than 1,700 people. Hinduja’s deal with Invesco comes at an opportune time as India’s growing wealth, favorable demographics and financialization of savings in capital markets hold promise.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.