Hinduja Group’s IndusInd International Holdings Ltd. (IIHL), has finalised a Joint Venture on Tuesday to acquire a 60% share in Invesco Asset Management India Ltd. (IAMI). No revelation of the transaction's precise financial details has been made yet.
Invesco will continue to own 40% of Invesco Asset Management India (IAMI), and Invesco MF will own a similar amount of the joint venture (JV). Both companies will sponsor the fund house. Regulatory approvals are pending, according to a press release from the involved parties.
IAMI CEO Saurabh Nanavati and the Management team will continue to lead the newly established joint venture.
Saurabh Nanavati stated that having a "strong domestic partner" will improve their ability to grow more into the Indian towns and cities, crucial for the development of the industry.
Andrew Lo, Senior Managing Director and CEO, Invesco Asia Pacific, stated “With IIHL [we will] continue to expand distribution of our high quality, global and domestic investment capabilities to serve more domestic investors in such an important market.”
“We are committed to serving our clients’ needs across India and maintaining our significant presence in Hyderabad as well,” he added.
During the Announcement of the Joint Venture, Chairman of IIHL Ashok Hinduja, said in a statement “It was our vision to transform IIHL into a BFSI powerhouse, We are very delighted to team up with Invesco to usher India’s Asset Management industry into a transformational innovation era.”
CEO of IIHL, Moses Harding, said “This is the most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects.”
Invesco
a US-based global asset manager, Invesco Mutual Fund, ranking as the 17th largest fund house in India, oversees approximately $1.6 trillion in assets worldwide. In the March quarter, its average assets under management (AUM) exceeded Rs 74,300 crore.
The Indian arm of Invesco Ltd., IAMI, which began its operations in India in late 2008 through the acquisition of Lotus India Asset Management Company, now ranks as the fifth largest foreign asset manager globally, with assets under management totaling 853.93 billion rupees ($10.3 billion), as of March 31, 2024.
IAMI has a presence in almost 40 cities across India, offering combined onshore and offshore advisory services. It has over 39,000 empanelled distributors and serves over 1.6 million retail investor folios. Over 70% of its assets under management (AUM) are allocated to equity and equity-oriented assets.
Moreover, IAMI runs an enterprise centre in Hyderabad, employing over 1,700 staff members. It covers various global support functions such as IT, Investment operations, finance, compliance, and human resources.
IIHL
IIHL, based in Mauritius, is a promoter entity affiliated with the Hinduja Group's IndusInd Bank, the fifth largest private sector bank in India.
The investment portfolio of IIHL includes a number of companies, such as Sterling Bank and Trust Ltd-Bahamas and IndusInd Bank. It also owns capital market assets like Afrinex Exchange Ltd-Mauritius, which has underlying securities valued at a total of $13.5 billion listed cumulatively. IIHL provides wealth management services to clients in Singapore, the UK, and Switzerland through Beryllus Capital,
(Inputs from Various Agencies)
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