IndusInd Bank Promoter To Acquire 60% Stake In Invesco's India Unit
IndusInd International Holdings will buy stake in Invesco Asset Management India for an undisclosed amount.
The Hinduja Group-backed IndusInd International Holdings Ltd. will acquire 60% stake in US investment manager Invesco's India unit, as the two announced a joint venture to expand operations. IIHL—the Mauritius-based promoter entity of IndusInd Bank—will buy stake in Invesco Asset Management India Ltd., which has $1.6 trillion in assets under management.
Invesco will retain 40% stake in the newly formed JV, and both companies will have sponsor status, according to a press statement on Tuesday.
The value of the deal has not been disclosed, and the transaction is subject to customary regulatory approvals.
The JV will fuse Invesco’s portfolio of global products and processes with IIHL's strong distribution network of more than 11,000 pan India touch points and 4.5 crore customer base.
The tie-up comes at the "most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects", said IIHL Chief Executive Officer Moses Harding.
Invesco began operations in India in late 2008, with the acquisition of Lotus India Asset Management Co. and has since grown to serve over 16 lakh retail investor folios.
"A strong domestic partner will significantly increase the JV’s ability to expand into more Indian cities and towns, which are driving industry growth," said CEO Saurabh Nanavati.
