Avendus Capital Pvt Ltd is seeking a deep valuation cut in the mutual fund business of IDFC Ltd, which is up for sale, three people aware of the development said.
Avendus is prepared for a valuation of less than ₹2,000 crore, against IDFC’s expectations of ₹3,500-4,000 crore for the unit, the people mentioned above said on condition of anonymity. The asset management unit’s falling profits, narrow product offering and the end of IDFC’s marketing support post-sale have prompted Avendus to demand a lower valuation, these people said.
