Muthoot Finance on Friday announced its entry into mutual fund space by acquiring IDBI MF.
IDBI MF is one of the profit-making AMCs in the industry with an AUM of approximately more than Rs.5,300 crore with 22 schemes.
Upon completion of the transaction, Muthoot Finance will purchase 100% equity shares of IDBI Asset Management Limited and IDBI MF Trustee Co Ltd for a total consideration of Rs. 215 Crore.
“The business objectives and customer centric approach that we follow within Muthoot Group is well aligned with the business objectives of mutual fund industry. We are excited to venture into this new path in the financial services space and we are equally excited to partner with strong, experienced and enthusiastic management team at IDBI Mutual Fund as we embark upon the next level of our journey,” said George Alexander Muthoot, Managing Director of Muthoot Finance Limited.
Post the transactions, IDBI AMC and IDBI MF Trustee Company will become wholly-owned subsidiary companies of Muthoot Finance.
