IDFC Asset Management Company Limited (AMC), one of the top 10 AMCs in the country, has received regulatory approval from regulators for the proposed change in ownership. Securities market regulator SEBI granted necessary clearance for the acquisition of IDFC AMC by a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC (GIC) and ChrysCapital (CC).
Last month, the Reserve Bank of India (RBI) gave its nod, while the Competition Commission of India (CCI) had already cleared the deal in August 2022. In April 2022, the boards of directors of IDFC Limited and IDFC Financial Holding Company Limited have approved the sale of IDFC AMC and IDFC AMC Trustee Company Limited to the consortium.
As a result of the completion of the proposed transformation, BFHL will own approximately 60% in IDFC AMC and GIC and CC will own approximately 20% each. On completion of the transition, IDFC AMC is proposed to be renamed as Bandhan Asset Management Company Limited and IDFC mutual fund (MF) is proposed to be renamed as Bandhan Mutual Fund, with BFHL becoming the sponsor of the mutual fund.
Consequently, each scheme of IDFC MF will be renamed with the word ‘IDFC’ being replaced by the word ‘Bandhan’. The consortium of incoming shareholders envisages continuity of the existing management team and investment processes in IDFC AMC. As a result, unitholders of IDFC MF will continue to benefit from the same high quality investment approach and focus that IDFC AMC is distinguished for.
Established in 2000, IDFC AMC AMC offers a range of prudently built investment products across equity, fixed income and hybrid.
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