The Hinduja Group will buy a 60% stake in American asset manager Invesco’s India mutual fund unit, marking its entry into the industry even as Jio Financial Services-BlackRock joint venture gears up to disrupt the market.
The move comes after the bank-to-automobile conglomerate won a court approval for purchase of Reliance Capital and its subsidiaries, covering life, health and general insurance, research and securities broking and asset reconstruction businesses. Hinduja and Invesco didn’t disclose the deal amount but said after the transaction, the US firm will retain a 40% stake in the mutual fund unit.
Invesco, which entered India’s MF industry through a stake-purchase in Religare Asset Management in 2012, is today the fifth largest foreign player. It manages assets worth £8.54 bn. It had bought 49% in Religare for about £46 mn and four years later purchased the remaining 51% stake.
Hinduja Group has routed the deal through its Mauritius based arm IndusInd International Holdings (IIHL). In November 2023, IIHL chairman Ashok Hinduja said there are gaps in the company’s financial services business like mutual funds, which it will fill up through acquisitions.
After inking the deal with Invesco, Hinduja said: “This is another step in journey of value creation for our shareholders. It was our vision to transform IIHL into a BFSI powerhouse.”
