Hinduja Group company IndusInd International Holdings (IIHL) said it has agreed to form a joint venture with US investment management company Invesco and also acquire a 60% stake in the latter’s India arm Invesco Asset Management India Limited (IAMI).
Invesco will retain a 40% stake in the newly formed JV and both IIHL and Invesco will have sponsor status, the companies said on Tuesday.
IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company. It claims to have grown to serve over 1.6 million retail investor folios, with over 70% of its Rs 85,393 crore AUM in equity and equity-oriented assets.
Invesco has $1.6 trillion in assets under management globally.
Both partners bring their respective strengths to the venture with Invesco’s portfolio of global products and processes, and IIHL facilitating a strong distribution network of 11,000+ pan India touch points and 45 million customers, the companies said.
The mutual fund industry in India is expected to become Rs 100 lakh crore in valuation by 2030, according to a recent report by Axis Capital.
“The Indian mutual fund industry is at an inflexion point with favourable demographics and a rising middle class which will prefer transparent investment products like mutual funds and ETFs,” said Saurabh Nanavati, CEO of Invesco Asset Management India Limited.
IIHL, which is the promoter entity of IndusInd Bank, was founded in 1993 by SP Hinduja. Recently, its bid for the acquisition of Reliance Capital Ltd. and its subsidiaries was approved by Indian regulators.