Promoters of private lender IndusInd Bank will buy a 60% stake in the Indian arm of global asset manager Invesco, the two companies said on Tuesday, without disclosing the deal amount.
After the deal, Invesco will keep a 40% stake in Invesco Asset Management India (IAMI), the fifth largest foreign asset manager with assets under management worth 853.93 billion rupees ($10.3 billion) as of March 31.
The partnership came at an "opportune time" with India's "rising prosperity, investor confidence and favourable demographics" offering enormous prospects, CEO of IndusInd International Holdings Ltd (IIHL), Moses Harding, said.
Mauritius-based IIHL is a promoter entity belonging to the Hinduja Group.
A "strong domestic partner" will increase the ability to expand to more Indian cities and towns, which are driving industry growth, IAMI CEO Saurabh Nanavati said.
Brokerage Jefferies expects Indian wealth managers to benefit from the country's economic growth and financialisation of savings into capital markets, aided by booming retail interest over the past two years.
