Birla Sun Life Open To Buyouts

New Delhi, January 22: | Updated: Jan 23 2003, 05:30am hrs
Birla Sun Life on Wednesday said it was open to acquisitions provided right opportunities exist, as part of efforts to attain inorganic growth to make the asset under its fold to Rs 7,000 crore from the present Rs 6,500 crore.

However, the asset management company, a joint venture of Aditya Birla Group and Canadian Sun Life, said it was not in favour of creating a seperate scheme for investing in stocks abroad though the Centre had relaxed the limit of mutual funds investment upto $1 billion.

We are certainly interested in inorganic growth. We will look at it (acquisitions) if right opporutnities and right valuations are there, Aditya Birla Group director (financial services) SK Mitra told reporters here. Asked about the reports on acquiring Alliance and Zurich Mutual Funds, he was non-commital on the latter. The AMC will on Thursday launch an open-ended Dividend Yield Plus, investing in equities of those companies paying dividend and also plans to roll out another Bond Index Fund by next month, taking the total to 18 products in the portfolio.

On the Dividend Yield Plus, through which it expects to raise over Rs 50 crore, he said the scheme would open on Thursday and closes on February 7 and would be investing primarily in a well-diversified portfolio of dividend paying companies that have relatively high dividend yield. Historically, stocks of high dividend yielding companies provide a high degree of protection during falling equity markets, he said. The Divided Yield Plus would have an minimum investmentRs. 5,000 and carries no entry load, but an exit load of two per cent if done within 365 days.

About the Bond Index Fund, Mr Mitra said he was awaiting the approval from the Securities and Exchange Board of India (Sebi) at any time, expressing the hope that it would be lauched by the end of February. Mr Mitra was skeptical on creating a foreign fund scheme and said if found any good prospects, they could invest from its MNC fund scheme.