IndusInd Bank May Buy 51% And Indusind International 9% In Invesco MF India
As part of IndusInd Bank CEO Sumant Kathpalia's strategy and a major push to enter into the asset management business, the group is in talks to acquire a 60 per cent stake in Invesco Mutual Fund (MF) India, arm of a leading US based asset management company, sources say. The deal is likely to be in the range of Rs 2500 crore to Rs 3000 crore or roughly 3 per cent to 5 per cent of the total assets under management (AUM) of Invesco India.
Deal structure is likely to be such where Indusind Bank holds 51 per cent stake in Invesco MF India while the bank's parent company Mauritius-registered Indusind International Holdings (IIHL) holds 9 percent stake. IIHL is also the holding company of Hinduja Group, one of Europe's richest business barons of Indian origin with an estimated net worth of over $32 billion. The deal between Indusind Bank and Invesco could be signed during the next month.
Invesco has an AUM of around Rs 80,000 crore. With the partnership Hinduja Group and Invesco plan to take the competition with Jio Financial and Blackrock head-on.
Apart from the MF business, the Hinduja group is also looking into banca partnerships and aggressive push in general and life insurance businesses. The Rs 9661 crore bid of the Hinduja Group for Reliance Capital (RCap) has been approved by the National Company Law Tribunal (NCLT). Rcap has both life and general insurance business under its umbrella and IndusInd Bank has set its eye on the same, sources say.
IndusInd Bank has applied for a para banking licence with the Reserve Bank of India (RBI), mainly with a view to get into MF, insurance and asset reconstruction business. The diversification, brainchild of Kathpalia, is a strategy that could build his legacy with the group that has been in the banking and financial services industry in India and Europe for a long time now. Indusind Bank is among the top 10 banks in India and its entry into para banking could put it in the league of HDFC Bank and ICICI Bank, experts say.
Last year, AP Hinduja, Chairman, Hinduja Group, revealed in a media interview that the group was evaluating targets, looking to fully cover the BFSI segment and eyeing a valuation of $35 billion to $40 billion in the space by 2030.
Email query was sent to Indusind Bank and their responses will be added to the story as and when received.
Jio Financial Services and BlackRock who are in a joint venture for MF business have applied for a mutual fund licence with SEBI.
Jio Financial Services, the newly demerged financial services arm of billionaire Mukesh Ambani's Reliance, and BlackRock had announced an agreement in July 2023 to form a 50:50 joint venture with $ 150 million investment each.
India's MF industry has grown to a size of more than Rs 50 lakh crores (approx $630 billion industry). Blackrock boasts of global assets totalling more than $8 trillion.
