The capital market regulator SEBI has approved Essel Finance Wealthzone, a wholly-owned subsidiary of Essel Finance Management to acquire stake in Peerless Funds Management.
The company has received approval to acquire entire shareholding of Peerless Fund Management Company Limited (Peerless AMC) and the Peerless Trust Management Company Limited (Peerless Trust).
“This acquisition will strengthen Essel Finance’s presence in financial services industry and establish Essel Finance as a large financial services conglomerate,” said Amitabh Chaturvedi, Managing Director, Essel Finance in a press release.
Bhargab Lahiri, Deputy Managing Director, Peerless General Finance and Investment Company said that Essel Group will build on the efforts taken by the Peerless Group over the last few years. “We are confident that the interests of our unitholders will remain foremost in their approach to this service, as it was in ours,” he said.
Rajiv Shastri, CEO, Peerless Mutual Fund said that the pan India presence of Essel Finance and its expertise across a comprehensive range of investment capabilities will help them serve their clients better.
Answering under what brand name the fund house will operate after exit of Peerless General Finance and Investment, Rajiv Shastri, CEO said that the fund house is mostly likely to be renamed as Essel Mutual Fund after approval. He further mentioned that investors will soon receive email mentioning the recent developments.
The deal value has not been disclosed and the process is expected to be completed within two months.
Last November, Essel Finance has signed an agreement with Essel Finance Management for acquiring 100% shareholding in the asset management company and trustee. This paves the road for Essel Finance in expanding the existing bouquet of financial services.
Essel Finance, subsidiary of Essel Group is a financial services company having presence across sectors such as media, entertainment, packaging, infrastructure and education.
The assets under management of the fund house stood at Rs.955.44 crore as on June 30. It manages one liquid scheme, four debt schemes, one hybrid scheme and three equity schemes.
