IDFC AMC's acquisition by Bandhan-led consortium gets SEBI nod

The proposed acquisition received RBI's nod in Oct 2022 (Representative image)

The Securities and Exchange Board of India (SEBI) has given it "no objection" to the acquisition of IDFC AMC by a consortium led by Bandhan Financial Holdings Ltd (BFHL), stating a release issued by the asset management company on November 30.

SEBI's nod comes a month after the Reserve Bank of India (RBI) gave its assent to the proposed acquisition. The Competition Commission of India (CCI) had given its approval in August.

As per the terms of the acquisition, BFHL will own approximately 60 percent stake in IDFC AMC, whereas, the other two members of the consortium - GIC and ChrysCapital (CC) will own 20 percent each.

On completion of the transition, IDFC AMC is proposed to be renamed as Bandhan Asset Management Company, and IDFC Mutual Fund (IDFC MF) is proposed to be renamed as Bandhan Mutual Fund, with BFHL becoming the sponsor of the mutual fund, the release said.

Consequently, each scheme of IDFC MF will be renamed to replace the word ‘IDFC’ with the word ‘Bandhan’, it added.

The consortium of incoming shareholders "envisages the continuity of the current management team and investment processes at IDFC AMC", the release noted.

IDFC AMC was established back in the year 2000 and is now counted amongst India’s top 10 asset management companies. The AMC offers a range of prudently constructed investment products – across equities, fixed income, and hybrid.