Millennium Post

Religare to sell 49% stake in MF arm for Rs 1,000 cr

Financial services major Religare group is selling 49 per cent stake in its mutual fund arm RAMC to US-based investment management firm Invesco for estimated Rs 1,000 crore.

Without disclosing the deal value, Religare Enterprises said in a statement that Atlanta-based Invesco has entered into a definitive agreement to acquire 49 per cent interest in Religare Asset Management Company [RAMC].

While the companies did not mention the deal value, sources privy to the transaction said that it could be in the range of about Rs 1,000 crore - translating into about 6.5-7 per cent of the total asset under management of RAMC.

RAMC is one of the top 15 asset management companies in India, with combined [onshore and offshore advisory] assets under management of over USD 2.6 billion [Rs 14,600 crore] as of August 31, 2012, and is present in 53 cities across India.

Invesco has a presence in India through its affiliate WL Ross & Co and also operates an enterprise centre in Hyderabad with a headcount of more than 600 staff.

'This addition will enhance Invesco's presence in an important and growing market,' Invesco President and CEO Martin L Flanagan said.
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