In Short:
IndusInd International Holdings, a company of the Hinduja Group, has acquired a 60% stake in Invesco Asset Management India. Invesco will hold the remaining 40% stake. This partnership aims to expand mutual fund distribution across India. The move is part of IIHL’s vision to become a strong player in the BFSI sector. The mutual fund industry in India is growing with rising prosperity and investor confidence.
IndusInd International Holdings Acquires Majority Stake in Invesco Asset Management India
Exciting news alert! IndusInd International Holdings, a Mauritius-based Investment Holding Company of the Hinduja Group, has recently decided to acquire a whopping 60 per cent stake in Invesco Asset Management India. While the exact amount remains undisclosed, this partnership is set to make some major waves in the investment world.
Joint Venture Dynamics
In this joint venture, Invesco, the current promoter, will retain a 40 per cent stake. Both IndusInd International Holdings and Invesco will have sponsor status of the mutual fund house, which is a huge deal in the financial realm.
Currently, Invesco Asset Management India stands as the 17th largest domestic asset manager in India with an impressive AUM of ₹854 crore. They have a strong presence in 40 cities across the country, making them a key player in the market.
New Leadership, Expanded Reach
Saurabh Nanavati, the CEO of Invesco Asset Management India, will continue to lead the new JV along with the existing management team. With IndusInd’s distribution network of over 11,000 pan-India touch points and 45 million customer base, and Invesco’s portfolio of global products and processes, the stage is set for a dynamic partnership.
Creating Value and Growth Opportunities
Ashok Hinduja, the Chairman of IIHL, expressed his excitement about this partnership being a step towards value creation for shareholders and the vision to transform the company into a BFSI powerhouse. He emphasized the commitment to transparent investment practices.
Moses Harding, CEO of IIHL, highlighted the immense prospects offered by the mutual fund business in India due to rising prosperity and investor confidence. This partnership aims to expand distribution and serve more domestic investors in the country.
Expanding Footprints and Industry Growth
Nanavati pointed out that having a strong domestic partner will significantly enhance the JV’s ability to expand into more cities and towns, which are key drivers of industry growth. This move signifies a strategic approach towards capturing new opportunities in the market.
With a history dating back to 2008, Invesco Asset Management India has established itself as a prominent player in the industry with over 39,000 empanelled distributors and an enterprise center in Hyderabad employing over 1,700 staff. Their focus on equity and equity-oriented assets has been a key factor in their success.
Future Outlook and Industry Trends
The mutual fund industry in India is currently at an inflexion point with favorable demographics and a rising middle class population showing a preference for transparent investment products like mutual funds and ETFs. This partnership comes at a crucial time to cater to the evolving needs of investors.
Overall, the alliance between IndusInd International Holdings and Invesco Asset Management India signifies a strategic move towards growth, value creation, and enhanced market presence. Stay tuned for more updates on this exciting journey!
