Hinduja Group company, IndusInd International Holdings, a Mauritius based Investment Holding Company and Invesco have entered into a definitive agreement to form a joint venture and IIHL will acquire a 60% stake in Invesco Asset Management India (IAMI). Saurabh Nanavati, CEO of Invesco Asset Management India will continue to lead the new JV along with the existing management team.
Invesco India has presence in 40 cities across the country. Invesco’s portfolio of global products and processes and IIHL facilitating a strong distribution network of 11000+ pan India touch points and 45million customer base is expected to boost prospects of the JV.
Invesco will retain 40 percent 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.
IIHL is the promoter entity of IndusInd Bank, the fifth largest private sector bank in India listed on BSE & NSE. Ashok Hinduja, Chairman, IIHL said, “This partnership with Invesco is aligned with our business philosophy & principles: ‘Partnership for Growth’ and ‘Act Local Think Global’. It was our vision to transform IIHL into a BFSI powerhouse.”
Moses Harding, CEO, IIHL added that, “This is the most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects.”
IAMI is the Indian arm of Invesco and began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company. “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 fund industry is at an inflexion point with favourable demographics and a rising middle class which will prefer transparent investment products like mutual funds and ETFs,” said Saurabh Nanavati, CEO of Invesco Asset Management India
“We are excited to partner with IIHL to continue to expand distribution of our high quality, global and domestic investment capabilities to serve more domestic investors in such an important market,” explained Andrew Lo, Senior Managing Director and Chief Executive Officer of Invesco Asia Pacific.
The transaction is subject to customary regulatory approvals. Motilal Oswal Investment Advisors acted as exclusive financial advisor to IIHL.