Shares of Infrastructure Development Finance Company (IDFC) on Tuesday cleared the divestment deal of the company and IDFC Financial Holding Company’s subsidiaries IDFC Asset Management Company and IDFC AMC Trustee Company by the Competition Commission of India (CCI). Disinvestment transactions are aggregated 4,500 crores. After the approval of CCI, the disinvestment deal is now subject to the approval of RBI and SEBI. Shares of IDFC climbed nearly 6% in a single day as investors kept an optimistic sentiment.
on BSE, IDFC settlement of shares by 60.35 up 2.55 or 4.41%. Shares touch intraday high 61.05 each – resulting in an increase of about 5.62% on the day.
The market cap of the company is approx. 9,634.85 crore.
In its regulatory filing, on the disinvestment of AMC Arms, IDFC said, “We would like to inform you that the Competition Commission of India … informed that the Commission, in its meeting held on August 01, 2022, considered the proposed combination .. and approved it under sub-section given. (1) of section 31 of the Competition Act, 2022.”
In this week’s two trading sessions, IDFC shares have gained nearly 12%, keeping the day’s high. If compared to Tuesday’s closing price, IDFC shares have jumped over 10.5 per cent since July 29, when the shares were around 54.6 each on BSE.
In April this year, a consortium of IDFC and Bandhan Financial Holdings Limited (BFHL), GIC, and Chris Capital (CC) entered into a definitive agreement to acquire IDFC Asset Management Company (IDFC AMC) and IDFC AMC Trustee Company Limited from the company. Compromised. idea of 4,500 crores.
Bandhan Consortium was selected through a highly competitive disinvestment process that saw strong participation from strategic players and financial investors. This will be the biggest deal ever in the Indian asset management industry.
IDFC AMC said in a statement on 6 April that the agreement envisages continuity of the existing management team and investment processes at IDFC AMC, allowing unitholders to benefit from the continuity in the high quality investment approach IDFC AMC is coveted.
Established in 2000, IDFC manages the AMC 1,15,000 crores of Asset Under Management (AUM) as on March 31, 2022 for over 1 million investor folios representing premier institutions, corporates, family offices and individual clients. IDFC AMC is the country’s ninth largest asset manager by AUM, has an experienced investment team and a deep, on-the-ground presence in over 50 cities and investors in over 750 cities and towns across the country.
IDFC AMC also operates a portfolio management business and serves as an investment manager for IDFC India Equity Hedge Fund, a Category III alternative investment fund. IDFC Trustee has been appointed as the Trustee Company of IDMF.
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