L&T Finance Likely To Buyout Morgan Stanley’s Wealth Management Biz

L&T Finance is likely to buyout the Indian wealth management business of Morgan Stanley. This move is expected to be finalised in a month’s time, according to a couple of financial dailies. Reports surrounding this acquisition started floating in the market on Jan 21, 2013. On the day, the stock saw an appreciation of 2.5% to Rs 90.65 per share.

L&T Finance has been aggressively buying businesses since the last one year, thus consolidating its offerings portfolio. In the last one year, it has made three acquisitions. These include the purchase of Indo-Pacific Housing Finance, a housing finance firm, Fidelity’s mutual fund business and Family Credit, an established NBFC (Non-Banking Financial Company) that has a presence in two-wheeler and auto financing.

Morgan Stanley had set up its wealth management business in India five years ago. Various reports are suggestive of the total assets under management to be close to USD 1 billion. The size of the deal is not known yet as there have been no comments on this front from either side. On similar lines, L&T Finance had roped in Manoj Shenoy and 12 executives from Swiss private bank EFG, which shut operations last year. They have reportedly brought in accounts worth USD 200-250 million.

With all these acquisitions, L&T Finance will be able to offer a bouquet of financial services thus making it a strong contender for the banking license.