Muthoot Finance to acquire IDBI Mutual Fund
Muthoot Finance known as the largest gold financing company in the world has entered into an agreement to acquire IDBI Asset Management Limited and IDBI Mutual Fund Trustee Company limited on 22nd November 2019.
The transaction is expected to be completed by February 2020, subject to necessary regulatory approvals that will pave the way for Kochi based Muthoot Finance’s entry into the mutual fund space.
Muthoot Finance informed that they will purchase 100% equity shares in both the companies for Rs 215 crore.
IDBI Mutual Fund promoted by IDBI bank in 2010, has Assets Under Management (AUM) of Rs 5300 crore is one of the profit-making mutual fund companies in India.
The India mutual fund industry has been among the fastest-growing businesses in the last five financial years with an increased AUM of X2.5 times from Rs 10.96 lakh crore in October 2014 to Rs 26.33 lakh crore on October 2019.