IndusInd International Holdings Limited (IIHL), a Mauritius-based investment holding company with several investments in banking and financial assets, and Invesco Ltd announced on April 9 that they have entered into a definitive agreement to form a joint venture and IIHL will acquire a 60 percent stake in Invesco Asset Management India Limited.
On April 2, Moneycontrol was the first to report that Hinduja Group's IIHL was in advanced talks to acquire 60 percent stake in Invesco MF.
IAMI is the Indian arm of Invesco Ltd, a leading independent global investment management firm with over $1.6 trillion in assets under management. IIHL is the promoter entity of IndusInd Bank, the 5th largest private sector bank in India listed on BSE & NSE and is regulated by Reserve Bank of India. Invesco will retain a 40 percent stake in the newly formed JV, and both IIHL and Invesco will have sponsor status. IAMI is the fifth largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of Rs 85,393 crore as of March 31, 2024, and a presence in 40 cities across the country.
Both partners bring their respective strengths to the venture with Invesco’s portfolio of global products and processes, and IIHL facilitating a strong distribution network of over 11,000 pan-India touch points and 45 million customer base. Founded in 1993 under Late S P Hinduja, IIHL is an investment holding company, well regulated by the Financial Service Commission, Mauritius under a Global Business License. Its investment portfolio comprises of Banking Services (IndusInd Bank, Sterling Bank & Trust Limited- Bahamas), Capital Market Assets (Afrinex Exchange Limited-Mauritius with a cumulative listing of $13.5-billion of underlying securities) and bespoke Wealth Management Services (Beryllus Capital-UK, Switzerland & Singapore).
IIHL’s bid for acquisition of Reliance Capital Ltd and its subsidiaries (Life, Health & General Insurance, Asset Reconstruction, Research & Securities Broking etc) was recently approved by NCLT, and is in the process of concluding the implementation of the resolution plan.
Ashok Hinduja, Chairman, IIHL said, “This partnership with Invesco is aligned with our business philosophy & principles: ‘Partnership for Growth’ and ‘Act Local Think Global’ and is another step in the journey of Value Creation for our shareholders. It was our vision to transform IIHL into a BFSI powerhouse. Our endeavour is to reach ‘last home, last investor’ in a transparent and efficient manner and living up to investors’ expectation that ‘mutual fund sahi hai’."
“We are very delighted to team up with Invesco to usher India’s Asset Management industry into a transformational innovation era. This is the most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects.” said Moses Harding, CEO, IIHL.
“We are excited to partner with IIHL to continue to expand distribution of our high quality, global and domestic investment capabilities to serve more domestic investors in such an important market,” said Andrew Lo, Senior Managing Director and Chief Executive Officer of Invesco Asia Pacific. “We are committed to serving our clients’ needs across India and maintaining our significant presence in Hyderabad as well.”
“A strong domestic partner will significantly increase the JV’s ability to expand into more Indian cities and towns, which are driving industry growth. The Indian mutual fund industry is at an inflexion point with favourable demographics and a rising middle class which will prefer transparent investment products like mutual funds and ETFs,” said Saurabh Nanavati, CEO of Invesco Asset Management India Limited, who will continue to lead the new JV along with the existing management team.
IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company and has since grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors, with over 70% of its AUM in equity and equity-oriented assets.
The transaction is subject to customary regulatory approvals and will have no material financial impact on Invesco Ltd. Motilal Oswal Investment Advisors acted as exclusive financial advisor to IIHL, while Crawford Bayley and AZB acted as legal advisors to IIHL & Invesco, respectively.
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