Religare all set to exit Indian AMC
Manjiri Meshram / 19 Nov 2015
Religare and Invesco have entered into an agreement to increase Invesco's shareholding to 100 per cent in the India Asset Management joint venture, Religare Invesco Asset Management Company (RIAMC). The transaction is awaiting necessary Indian Regulatory approvals.
Religare is set to exit from the Indian asset-management company that it controls, by selling its 51 per cent stake in Religare Invesco Asset Management Company.
Religare and Invesco have entered into an agreement to increase Invesco's shareholding to 100 per cent in the India Asset Management joint venture, Religare Invesco Asset Management Company (RIAMC). The transaction is awaiting necessary Indian Regulatory approvals.
RIAMC is a 51 per cent Religare and 49 per cent Invesco joint venture company. It is one of India's leading asset management companies, with an average asset base of Rs 21593.59 crores as on 30th September 2015. RIAMC serves the investment needs of domestic and global investors through mutual funds and sub advised portfolios.
Religare is very happy to accept Invesco's offer to increase its shareholding in this venture. Religare believes that this can be a potential game changer for the business and will further enhance the company's ability to meet investor needs. Religare has had a fulfilling partnership with Invesco for many years.
Money from the divestment will be used to reduce debt at the holding level also infusing funds in health insurance and lending businesses. Religare has debt of about Rs 600 crores. In addition, it has an operational debt of about Rs 15000 crores in Religare Finvest, which is engaged in lending.
Invesco is excited about its long term prospects in the Indian market. Religare Invesco has a highly capable management team. By taking full ownership of the business, Invesco will further increase its presence in India.
Religare is an emerging markets financial services group. The company offers a wide array of products and services including broking, insurance, asset management, lending solutions, investment banking and wealth management.
Recently, Religare posted an outstanding Q2FY16 results, wherein the total income of the company rose by 8.6 per cent to Rs 1134 crore on sequential basis. The EBITDA increased by 4.61 per cent to Rs 582 crore Q-o-Q basis. The Net Profit of Religare jumped by 70.47 per cent to Rs 63.33 crore on quarterly basis.
Today after the announcement of this news, Religare is trading at Rs 272, around 2 per cent lower on BSE.
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