Sebi approves IIHL's acquisition of Invesco's PMS business

New Delhi: Capital market regulator Sebi has granted its approval to Hinduja Group firm IndusInd International Holdings for the acquisition of Invesco AMC's portfolio management services business.

According to sources, Sebi's approval marks the completion of a crucial phase in IndusInd International Holdings Limited's (IIHL) 60 per cent acquisition of Invesco AMC, leaving only one final regulatory approval before the transaction can be completed.

An application seeking the Securities and Exchange Board of India's green signal for grant of sponsor approval to IIHL is in process and upon receipt, IIHL will proceed with consummation of the transaction, sources said.

The Competition Commission of India (CCI) has already granted its consent to IIHL for acquiring 60 per cent shareholding in each of InvescoAsset Management (India) Pvt Ltd and Invesco Trustee Pvt Ltd.

IIHL will be holding the investment through its wholly-owned and controlled subsidiary.

The company had earlier bid and emerged successful suitor for the acquisition of Reliance Capital Ltd and its subsidiaries that operate in the life insurance, health and general insurance sectors as well as asset reconstruction, research and securities broking. IIHL’s resolution plan has been approved by the National Company Law Tribunal.

IIHL’s ownership will benefit Invesco to expand into more Indian cities and towns due to the presence of a strong domestic partner.

Invesco Asset Management began its India operations in 2008 with the acquisition of Lotus India Asset Management Company. Since then, it has grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors as of April, with over 70 per cent of its assets under management in the equity and equity-oriented assets.

It is the 5th largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of Rs 85,393 crore as of March 31, 2024, and a presence in 40 cities across the country.