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27 Apr 2012 04:00 AM
Axis AMC-Schroders deal may be announced soon 
Team Cafemutual
 

Due to tepid markets, valuations have become attractive for foreign investors looking to gain a foothold in the Indian MF industry.

Axis AMC has been scouting for a foreign partner for a long time. The fund house, in a recent interview, had told Cafemutual that it is looking at achieving break-even this fiscal.

Sources have confirmed to Cafemutual that Axis AMC is looking at selling 26% to UK-based huge MF player Schroders Investment Management, as indicated in a few media reports today. The AMC is expecting a deal between Rs 200 crore-Rs 300 crore valuing Axis MF at around Rs 800 crore-Rs 1000 crore, said a market source to Cafemutual. Again, it is learnt that the RBI has accepted the proposed stake sale.

“Currently a number of foreign companies are looking to invest in India because they find the valuations attractive. Many overseas AMCs still consider India to be an important market and want a presence here. In the next 6 months, we might see two more such deals taking place,” said an official from an investment bank, preferring anonymity. The most significant such deal between an overseas player and Indian AMC was when Nippon Life picked up 26% in Reliance MF.

Not all global fund houses have found the going smooth in India. The most spectacular such deal in the past has been Fidelity’s exit from India.

Schroders has a presence in 26 different countries across Europe, the Americas, Asia and the Middle East. Axis MF manages an AUM of Rs 8,900 crore.


 
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