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Journalism of Courage
Nippon Life’s buy Reliance Cap AMC for Rs 1,450 crore (USD 290 million) is seen as the biggest foreign direct investment (FDI) in the Indian mutual funds space.
This transaction tops the chart of the major inbound deals in the fund management business in the recent past.
Reliance Capital Asset Management-Nippon Life’s USD 290 million deal has toppled the USD 142.4 million deal of global investment fund T Rowe Price and UTI Asset Management,which was the largest so far by a huge margin.
In 2009,foreign institutional investor T Rowe Price had announced its plans to acquire 26 per cent stake in UTI Asset Management Company and UTI Trustee company for USD 142.4 million.
The other major deals in the asset management space include LIC Mutual Fund’s 35 per cent stake sale to Japanese Asset Management company Nomura for USD 62.8 million (2009),followed by French firm Natixix picking up 25 per cent stake in IFDC MF for USD 61.1 million (2010).
In 2004,State Bank of India had divested 37 per cent stake in SBI Fund Management,its mutual fund business,to France-based Societe Generale Asset Management (SGAM) for overUSD 35 million.
In 2007,Netherlands-based Robeco Groep NV has decided to buy 49 per cent stake in Canara Bank’s asset management arm,Canara Investment Management Services Ltd.
In 2005,Sundaram Asset Management Company,a subsidiaryof Chennai-based Sundaram Finance,and France’s BNP Paribas Asset Management had announced a 50:50 joint venture for the mutual fund business in India.
In 2003,Industrial Development Bank of India divested its entire equity stake in IDBI-Principal Asset Management Company to joint venture partner Principal Financial Group for Rs 94 crore.
