Hinduja Group's IIHL Eyes Majority Stake in Invesco AMC

3 Apr 2024 , 11:43 AM

Multiple news reports stated that IndusInd International Holdings Ltd (IIHL), supported by the Hinduja Group, is preparing to enter the Indian mutual fund market and has held talks to purchase a majority position in Invesco MF, the US-based global investment firm’s Indian branch.

These falls within IIHL’s major BFSI campaign. After more than nine or ten months of development, the planned deal is currently at an advanced stage.

According to the terms of the agreement, the Invesco Group intends to retain a 40% stake in Invesco MF while IndusInd International Holdings Ltd (IIHL), the promoter of IndusInd Bank, looks to acquire a majority 60 percent stake in the company.

According to a report, the deal is scheduled to be officially signed and announced in the upcoming weeks. Following the acquisition of the target company’s controlling ownership, Saurabh Nanavati, the current CEO, would continue to lead the management team.

“For the Hinduja Group, the deal works for their BFSI aspirations and Invesco MF fits in with their desired portfolio, especially after IIHL’s resolution plan for Reliance Capital was approved by the NCLT,” a third party report stated.

According to another report, “Motilal Oswal Financial Services is acting as the financial advisor for this deal.”

Despite reminders and texts, email inquiries to the Hinduja Group, Invesco US, Invesco MF, and Motilal Oswal Financial Services were unanswered at the time this article was published.

The Hinduja Group’s bid of ₹9,660 Crore, with IIHL acting as the acquiring entity, was accepted by the Committee of Creditors in June 2023 for Reliance Capital, which is involved in asset reconstruction, insurance, and broking, as part of the insolvency process. The agreement has been approved by the RBI and CCI.

Subsequently, the IIHL board approved a $1.5 Billion capital raising to finance the acquisition of Reliance Capital and to expand the company’s stake in IndusInd Bank to 26% from 15%.

At Carlton House Terrace in London, UK on October 25, 2023, AP Hinduja, Chairman of the Hinduja Group (India), announced that the company is assessing targets, hoping to fully cover the BFSI market and aiming for a $35 Billion to $40 Billion space valuation by 2030.

“We’re investigating it. We’re doing our research. And like I mentioned, I’m hoping that by March of this fiscal year, we’ll be able to announce one or two of these acquisitions,” he stated without going into greater detail.

With a goal of becoming a global financial services organization, IIHL has a net asset value of $1.67 Billion as of July 3, 2023. The company intends to list so that its many stockholders would have the ability to trade.

A few of the deals in the sector over the last few years have included the purchase of L&T MF by HSBC AMC for $425 Million, the acquisition of Principal MF by Sundaram MF, and the victory of an IDFC MF competition by a consortium led by Bandhan.

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