Peerless Group, a Kolkata-based financial services major, today sold its mutual fund business with an asset base of over Rs 970 crore to Essel Finance Management.
However, the deal size is under wraps.
Essel Finance, which offers a range of financial services and products such as SME Business Loans, said the acquisition is part of its strategy to become a financial services conglomerate.
Essel Finance is the umbrella brand for the financial businesses of the USD 10 billion conglomerate, Essel Group, which is founded by Chairman Subhash Chandra.
"The addition of the mutual fund business will fortify our position and take us closer to our goals," Essel Finance Management Managing Director Amitabh Chaturvedi said.
In a statement, Peerless General Finance and Investment Company said: "It has signed an agreement to sell its entire shareholding in the Peerless Fund Management Company Ltd and Peerless Trust Management Company Ltd to Essel Finance Management." The transaction will be completed once all regulatory approvals have been obtained.
"We are happy to have reached this agreement with the highly regarded Essel Group, which intends to build on the efforts taken by the Peerless group over the last few years.
We are confident that the interests of our unitholders will remain foremost in their approach to this service, as it was in ours," Peerless General Finance and Investment Company MD S K Roy said.
Peerless Mutual Fund, a subsidiary of Peerless General Finance and Investment Company, was incorporated in April 2009. At the end of September quarter, Peerless Mutual Fund had an asset under management of Rs 970.88 crore.
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