Cyril Amarchand Mangaldas advises Groww on acquisition of Indiabulls Mutual Fund ANI | Updated: May 12, 2021 13:27 IST
New Delhi/ Mumbai (Maharashtra) [India], May 12 (ANI/NewsVoir): Cyril Amarchand Mangaldas advised Nextbillion Technology Private Limited (Groww Group), India s leading investment tech-platform, on its acquisition of Indiabulls Asset Management Company Limited and Indiabulls Trustee Company Limited, the asset management company and trustee company, respectively, of Indiabulls Mutual Fund, from its sponsor, Indiabulls Housing Finance Limited, subject to necessary approvals.
This is the first transaction in India under SEBI s new sponsor eligibility criteria for mutual funds.
Cyril Amarchand Mangaldas advised Groww and the transaction and regulatory team was led by Anu Tiwari, Partner; with support from Anindita Bhowmik, Partner; Sushim Aryan, Senior Associate; and Aditya Sarkar, Associate.
Groww inks deal to acquire Indiabulls’ mutual fund biz for Rs 175cr
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Synopsis
The sale of Indiabulls AMC will be limited only to the Mutual Fund business, while the Alternate Investment Fund (AIF) and Portfolio Management Service (PMS) businesses will be demerged from the existing Indiabulls AMC structure.
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Online investment platform, Groww will acquire Indiabulls Asset Management Company from Indiabulls Housing Finance for a consideration of Rs 175 crores.
The sale of Indiabulls AMC will be limited only to the Mutual Fund business, while the Alternate Investment Fund (AIF) and Portfolio Management Service (PMS) businesses will be demerged from the existing Indiabulls AMC structure, and remain under Indiabulls Housing Finance, subject to regulatory approvals, Indiabulls Housing Finance said in an exchange filing on Tuesday.
Groww to buy Indiabulls AMC s mutual funds business for Rs 175Cr yourstory.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yourstory.com Daily Mail and Mail on Sunday newspapers.
Indiabulls Housing Finance has executed definitive transaction document to divest its mutual fund business to Nextbillion Technology, part of Groww Group ( Groww ) for about Rs 175 crore.
Indiabulls Housing Finance is the sponsor of Indiabulls Mutual Fund. Indiabulls Housing has decided to focus on its real estate asset management business through AIF structures in line with its asset-light strategy. The real estate asset management business is complementary to the core business of the company.
The company plans to grow this business in partnership with global player(s). The mutual fund business does not remain a core focus area for Indiabulls Housing Finance. Therefore, the company has decided to focus management bandwidth and consolidate capital towards its core lending business and divest out of the mutual fund business.
Groww, a fast-growing technology-oriented investment platform, has signed an agreement with Indiabulls Housing Finance (IBHFL) to acquire Indiabulls Asset Management Company and Trustee Company for consideration of Rs 175 crore (including cash and cash equivalents of Rs 100 crore). With this acquisition, Groww will become one of the first fintech companies to enter the Rs 32-trillion asset management space.
Groww has more than 15 million customers and offers services like mutual fund and stock market investing. The transaction is subject to market regulator Securities and Exchange Board of India (Sebi) and other regulatory approvals. In a release, Groww said Sebi’s recent change in sponsorship criteria for fintech companies has enabled it to enter into the asset management space.