Infrastructure finance company IDFC Ltd. has received the market regulator Securities and Exchange Board of India’s (SEBI) approval for the sale of IDFC Mutual Fund to a consortium comprising Bandhan Financial Holding and other entities.
IDFC on Tuesday said that SEBI in its letter dated November 29 approved the change in control of IDFC Mutual Fund, which manages around 49 mutual fund schemes across equity, debt, and hybrid segments.
While SEBI has approved the change of control in IDFC AMC Ltd., it has asked the AMC to seek approval separately for a change in directors of the Trustee Company.
Earlier in April, IDFC Ltd. and the consortium of Bandhan Financial Holding Ltd., GIC-affiliate Lathe Investment Pte Ltd., Tangerine Investments Ltd., and ChrysCapital-affiliate Infinity Partners had entered into a definitive agreement for the acquisition of IDFC AMC and IDFC AMC Trustee Company for around Rs 4,500 crore.
The consortium is buying a 99.96 percent stake in IDFC Asset Management Company and a 100 percent stake in IDFC AMC Trustee Company Limited.
The Bandhan consortium was selected through a divestment process, which witnessed strong participation from strategic players and financial investors.
The agreement envisages the continuity of the current management team and investment processes at IDFC AMC. IDFC has received approval from the RBI and the Competition Commission of India for the sale.
Shares of IDFC are trading at Rs 81.60, up nearly 1 percent.
