Mauritius-based IndusInd International Holdings Limited (IIHL) has entered into a definitive agreement with global independent investment management firm Invesco to acquire a 60% stake in its Indian unit IAMI which boasts over $1.6 trillion in assets under management.

 

IndusInd International Holdings Limited (IIHL), a Mauritius-based company with several investments in banking and financial assets, today (April 10) announced that it has entered into a definitive agreement with Invesco, a global independent investment management firm, to acquire a 60% stake in Invesco Asset Management India Limited (IAMI). 

 

IAMI is the Indian arm of Invesco, a leading independent global investment management firm with over $1.6 trillion in assets under management, while IIHL is the promoter entity of IndusInd Bank, the fifth largest private sector bank in India listed on BSE & NSE and is regulated by Reserve Bank of India. 

 

As per the deal, Invesco will retain a 40% stake in the newly formed JV, and both IIHL and Invesco will have sponsor status. 

 

Founded in 1993 by Indian-born billionaire businessman SP Hinduja, the IIHL has a representative office in the UAE and also has a large shareholder base from the Indian diaspora in the emirates.

 

IAMI is the fifth largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of $10.3 billion as of March 31, 2024, and a presence in 40 cities across the country, said the company in a statement.

 

Both partners bring their respective strengths to the venture with Invesco’s portfolio of global products and processes, and IIHL facilitating a strong distribution network of 11000+ pan India touch points and 45 million customer base, it stated.

 

"This partnership with Invesco is aligned with our business philosophy and principles: ‘Partnership for Growth’ and ‘Act Local Think Global’ and is another step in the journey of value creation for our shareholders," remarked Ashok Hinduja, the Chairman of IIHL. 

 

Moses Harding, the CEO of IIHL said: "We are very delighted to team up with Invesco to usher India’s Asset Management industry into a transformational innovation era. This is the most opportune time when India on the back of rising prosperity, investor confidence and favourable demographics offers enormous prospects."

 

Andrew Lo, Senior Managing Director and Chief Executive Officer of Invesco Asia Pacific, said: "We are excited to partner with IIHL to 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. 

 

IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company and has since grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors, with over 70% of its AUM in equity and equity-oriented assets. 

 

Invesco also operates an enterprise centre in Hyderabad employing more than 1,700 staff across a range of global support functions, including information technology, investment operations, finance, compliance, and human resources.

 

Saurabh Nanavati, CEO of Invesco Asset Management India Limited, said: "A strong domestic partner will significantly increase the JV’s ability to expand into more Indian cities and towns, which are driving industry growth."

 

"The Indian mutual fund industry is at an inflexion point with favourable demographics and a rising middle class which will prefer transparent investment products like mutual funds and ETFs," stated Nanavati, who will continue to lead the new JV along with the existing management team.

 

Motilal Oswal Investment Advisors acted as exclusive financial advisor to IIHL, while Crawford Bayley and AZB acted as legal advisors to IIHL & Invesco respectively.-TradeArabia News Service