IndusInd International Holdings Limited(IIHL)to partner with Invesco and acquire 60% stake in Invesco India Asset Management Limited (IAMI)
–IndusIndInternationalHoldingsLimited(“IIHL”),aMauritius basedInvestmentHoldingCompanywithseveralinvestmentsinbankingandfinancial assets, and Invesco Ltd. announced today that they have entered into a definitive agreement to form a joint venture (“JV”), and IIHL to acquire a 60% stake in Invesco Asset Management India Limited (“IAMI”).
IAMI is the Indian arm of Invesco Ltd., a leading independent global investment management firm with over USD 1.6 trillion in assets under management. IIHL is the promoterentityofIndusIndBank,the5thlargestprivatesectorbankinIndialistedon BSE&NSEandisregulatedbyReserveBankofIndia.Invescowillretaina40percent stake in the newly formed JV, and both IIHL and Invesco will have sponsor status.
IAMI is the fifth largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of INR 853.93 bn as of March 31, 2024, and a presence in 40 cities across the country.
BothpartnersbringtheirrespectivestrengthstotheventurewithInvesco’sportfolioof global products and processes, and IIHL facilitating a strong distribution network of 11000+ pan India touch points and 45mn customer base.
Founded in 1993 under the visionary leadership of Late Shri S.P. Hinduja, IIHLis an investment holding Company well regulated by the Financial Service Commission, Mauritius under a Global Business License. Governed by the Board of Directors, its investment portfolio comprises of Banking Services (IndusInd Bank, Sterling Bank & Trust Limited-Bahamas), CapitalMarketAssets (Afrinex ExchangeLimited-Mauritius with a cumulative listing of $13.5bn of underlying securities) and bespoke Wealth Management Services (Beryllus Capital-UK, Switzerland & Singapore).
IIHL’s bid for acquisition of Reliance Capital Ltd.& its subsidiaries (Life, Health & General Insurance, Asset Reconstruction, Research & Securities Broking etc.) was recentlyapprovedbyNCLT,andisintheprocessofconcludingtheimplementationof the Resolution Plan.
Mr. Ashok Hinduja, Chairman, IIHL said, “This partnership with Invesco is aligned with our business philosophy & principles: ‘Partnership for Growth’ and ‘Act Local Think Global’ and is another step in the journey of Value Creation for our shareholders. It was our vision to transform IIHL into a BFSI powerhouse. Our endeavour is to reach ‘last home, last investor’ in a transparent and efficient manner and living up to investors’ expectation that ‘mutual fund sahihai’.”
“We are very delighted to team up with Invesco to usher India’sAsset Management industry into a transformational innovation era.This isthe most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects.” said Moses Harding, CEO, IIHL.
“We are excited to partner with IIHL to continue to expand distribution of our high quality ,globalanddomesticinvestmentcapabilitiestoservemoredomesticinvestors insuchanimportantmarket,”saidAndrewLo,SeniorManagingDirectorandChief ExecutiveOfficerofInvescoAsiaPacific.“Wearecommittedtoservingourclients’ needs across India and maintaining our significant presence in Hyderabad as well.”
IAMI began operations in India in late 2008 with the acquisition of Lotus IndiaAsset Management Company and has since grown to serve over 1.6 million retail investor foliosandover39,000empanelleddistributors,withover70%ofitsAUMinequityand equity-oriented assets. Invesco also operates an enterprise centre in Hyderabad employingmorethan1,700staffacrossarangeofglobalsupportfunctions,including information technology, investment operations, finance, compliance, and human resources.
“A strong domestic partner will significantly increase the JV’s ability to expand into more Indian cities and towns, which are driving industry growth. The Indian mutual fundindustryisataninflexionpointwithfavourabledemographicsandarisingmiddle class which will prefer transparent investment products like mutual funds and ETFs,” said Saurabh Nanavati, CEO of Invesco Asset Management India Limited, who will continue to lead the new JV along with the existing management team.
Thetransactionissubjecttocustomaryregulatoryapprovals.Thetransactionwillhave an immaterial financial impact on Invesco Ltd.
MotilalOswal Investment Advisors acted as exclusive financial advisor to IIHL. Crawford Bayley andAZB acted as legal advisors to IIHL& Invesco respectively.
About IndusInd International Holdings Limited (www.indusindinternational.com) IIHL’svisionistobeaGlobalFinancialServicesInstitutionwithacommitmentto excellence in international orientation, innovation, speed, and strict compliance with theprinciplesofgoodcorporategovernance.WithacurrentnetworthofUSD2.65bn, IIHL iscommittedtomaintainingvalueaccretivedynamicgrowththroughongoing investment and acquisition of high-value assets.
IndusIndBank,establishedin1994,isadigitallydriveninnovativeuniversalBankwith a widespread banking footprint with over 35 million customers, 6100+ distribution points across India along with offices at London, Dubai & Abu Dhabi. With 359,000 shareholders,ofwhich67.67%beingmarqueeInternationalInstitutionalInvestors,its sharesarelistedattheBombayStockExchange&NationalStockExchange,whereas GDRs are listed on the Luxembourg Stock Exchange, with a current market cap of USD 14.5 bn.
About InvescoLtd.
Invesco is a global independent investmentmanagement firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investmentcapabilities.Withofficesinmorethan20countries,Invescomanaged$1.6 trillion in assets on behalf of clients worldwide as of February 29, 2024. For more information, visit www.invesco.com/corporate.
