Gold loan provider Muthoot Finance (MFIN) has bought IDBI Mutual Fund (IDBI MF) on November 22, paving way for company's entry into mutual funds space.
"MFIN today entered into a definitive agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited," Muthoot Finance said in its BSE filing.
The transaction is expected to be completed by end of February 2020 subject to receipt of necessary regulatory approvals, it added.
MFIN said upon closing, both IDBI AMC and IDBI MF Trustee Company would become its wholly owned subsidiary companies.
Promoted by IDBI Bank in 2010, IDBI MF is one of the profit making companies in the mutual fund space with Assets Under Management (AUM) of approximately Rs 5,300 crore.
IDBI MF runs 22 schemes with robust AUM across products, geography and investors.
Muthoot Finance said it would purchase 100 percent equity shares in both companies for Rs 215 crore.
ICICI Securities Limited acted as the advisors in the transaction to sellers. AZB & Partners acted as legal advisor to MFIN, while J Sagar Associates acted as the legal advisor to the sellers.
"IDBI 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," George Alexander Muthoot, Managing Director of Muthoot Finance said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
