LIC Mutual Fund is likely to acquire IDBI Mutual Fund, said two sources familiar with the development.
This has come after LIC has bought 238 crore equity shares of IDBI bank amounting close to Rs.14,500 crore. Earlier in October, Life Insurance Corporation of India (LIC) made an open offer to acquire 26% stake in IDBI Bank.
Sources said that the acquisition might take some time due to regulatory approvals.
As per December 2018 quarterly AUM, LIC MF manages Rs.13,378 crore and IDBI MF Rs.8599 crore. If the deal goes through, the AUM of the combined entity would be close to Rs.22,000 crore. Currently, by AUM size, LIC MF ranks nineteenth and IDBI twenty-fifth. The combined entity would overtake Mirae Asset and Motilal Oswal to reach sixteenth position.
This acquisition would allow LIC MF to leverage IDBI’s branch network and target clients in B30 locations.
