scorecardresearchIDFC MF sale: Bandhan Group, Invesco MF consortiums emerge as final 2 bidders

IDFC MF sale: Bandhan Group, Invesco MF consortiums emerge as final 2 bidders

Updated: 25 Mar 2022, 11:01 AM IST
TL;DR.

The two sets of bidders taken to the final round are a consortium of Bandhan Group, GIC and ChrysCapital and a consortium of Invesco MF, Warburg Pincus and Kedaara Capital, the report noted.

The two sets of bidders taken to the final round are a consortium of Bandhan Group, GIC and ChrysCapital and a consortium of Invesco MF, Warburg Pincus and Kedaara Capital, the report noted.

The two sets of bidders taken to the final round are a consortium of Bandhan Group, GIC and ChrysCapital and a consortium of Invesco MF, Warburg Pincus and Kedaara Capital, the report noted.

Bandhan Group, Invesco MF consortiums are the two final bidders being considered to buy IDFC MF, six months after the divestment process started, Moneycontrol reported.

As per the report, this is likely to be the biggest mutual fund sale in recent times following the sale of L&T MF to HSBC MF in December for around 3,188 crore.

“Both Bandhan Group and Invesco MF are aggressively chasing this deal and when there is competitive intensity, suitors are usually given an opportunity in the final stage to improve or tweak terms and conditions, valuations and offer clarity on the path to deal closure before a winner is picked,” Moneycontrol report said quoting sources.

The two sets of bidders taken to the final round are a consortium of Bandhan Group, GIC and ChrysCapital and a consortium of Invesco MF, Warburg Pincus and Kedaara Capital, it noted. The Hinduja Group which had submitted a binding bid via a promoter group entity of IndusInd Bank is out of the race and a consortium of Sundaram MF and Carlyle, which had earlier expressed interest, also dropped out, the report added. Citi is the sell-side advisor to the deal.

The selected bindings bids are likely to be in excess of 4,400 crore, sources told Moneycontrol, further stating that the size and scale of IDFC MF and its strong management team are seen as two key reasons why the deal has generated strong interest.

IDFC MF has assets under management (AUM) of around 1.2 lakh crore of AUM with 64 percent of that in fixed income and 26 percent in equity. For FY20-21, the firm posted a net profit of 144 crore, up 81 percent from 79.4 crore in FY20. In the first half of 2022, the mutual fund's PAT was seen at 80 crore.

 

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First Published: 25 Mar 2022, 11:01 AM IST