Sebi Greenlights IndusInd's Major Acquisition of Invesco AMC

Sebi has approved Hinduja Group's IndusInd International Holdings Limited to acquire Invesco AMC's portfolio management services. This approval is a critical step in IIHL's acquisition process, with one final regulatory nod pending. The deal, also approved by CCI, will strengthen Invesco's presence in India.

Capital market regulator Sebi has granted its approval to Hinduja Group firm IndusInd International Holdings for the acquisition of Invesco AMC's portfolio management services business. Sources reveal this marks a crucial phase in IndusInd International Holdings Limited's (IIHL) 60 per cent acquisition of Invesco AMC, leaving only one final regulatory approval before the transaction can be completed. An application seeking Securities and Exchange Board of India's green signal for grant of sponsor approval to IIHL is in process and upon receipt, IIHL will proceed with consummation of the transaction, sources said.

The Competition Commission of India (CCI) has already granted its consent to IIHL for acquiring 60 per cent shareholding in each of Invesco Asset Management (India) Pvt Ltd and Invesco Trustee Pvt Ltd. IIHL will hold the investment through its wholly-owned subsidiary. Previously, the company bid and emerged successful in acquiring Reliance Capital Ltd and its subsidiaries. IIHL's resolution plan was also approved by the National Company Law Tribunal.

IIHL's ownership will benefit Invesco by allowing expansion into more Indian cities and towns, thanks to the strong presence of a domestic partner. Invesco AMC began operations in India in 2008 by acquiring Lotus India Asset Management Company. Since then, it has grown to serve over 1.6 million retail investor folios and 39,000 empanelled distributors, with over 70 per cent of its assets under management in equity-oriented assets. It is the 5th largest foreign asset manager and the 17th largest domestic asset manager in India, with assets under advisement of Rs 85,393 crore as of March 31, 2024, and a presence in 40 cities.

(With inputs from agencies.)