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IndusInd International Holdings Limited (IIHL) to partner with Invesco and acquire 60% stake in Invesco India Asset Management Limited (IAMI)
Mumbai, 9th April 2024 – IndusInd International Holdings Limited (“IIHL”), a Mauritius
based Investment Holding Company with several investments in banking and financial
assets, and Invesco Ltd. announced today that they have entered into a definitive
agreement to form a joint venture (“JV”), and IIHL to acquire a 60% stake in Invesco
Asset Management India Limited (“IAMI”).
IAMI is the Indian arm of Invesco Ltd., a leading independent global investment
management firm with over USD 1.6 trillion in assets under management. IIHL is the
promoter entity of IndusInd Bank, the 5th largest private sector bank in India listed on
BSE & NSE and is regulated by Reserve Bank of India. Invesco will retain a 40 percent
stake in the newly formed JV, and both IIHL and Invesco will have sponsor status.
IAMI is the fifth largest foreign asset manager and the 17th largest domestic asset
manager in India with combined onshore and offshore advisory and assets under
management of INR 853.93 bn as of March 31, 2024, and a presence in 40 cities
across the country.
Both partners bring their respective strengths to the venture with Invesco’s portfolio of
global products and processes, and IIHL facilitating a strong distribution network of
11000+ pan India touch points and 45mn customer base.
Founded in 1993 under the visionary leadership of Late Shri S.P. Hinduja, IIHL is an
investment holding Company well regulated by the Financial Service Commission,
Mauritius under a Global Business License. Governed by the Board of Directors, its
investment portfolio comprises of Banking Services (IndusInd Bank, Sterling Bank &
Trust Limited- Bahamas), Capital Market Assets (Afrinex Exchange Limited-Mauritius
with a cumulative listing of $13.5bn of underlying securities) and bespoke Wealth
Management Services (Beryllus Capital-UK, Switzerland & Singapore).
IIHL’s bid for acquisition of Reliance Capital Ltd.& its subsidiaries (Life, Health &
General Insurance, Asset Reconstruction, Research & Securities Broking etc.) was
recently approved by NCLT, and is in the process of concluding the implementation of
the Resolution Plan.
Mr. Ashok Hinduja, Chairman, IIHL said, “This partnership with Invesco is aligned
with our business philosophy & principles: ‘Partnership for Growth’ and ‘Act Local
Think Global’ and is another step in the journey of Value Creation for our
shareholders. It was our vision to transform IIHL into a BFSI powerhouse. Our
endeavour is to reach ‘last home, last investor’ in a transparent and efficient manner
and living up to investors’ expectation that ‘mutual fund sahi hai’.”
“We are very delighted to team up with Invesco to usher India’s Asset Management
industry into a transformational innovation era. This is the most opportune time when
India on the back of rising prosperity, investor confidence, and favourable
demographics offers enormous prospects.” said Moses Harding, CEO, IIHL.
“We are excited to partner with IIHL to continue to expand distribution of our high
quality, global and domestic investment capabilities to serve more domestic investors
in such an important market,” said Andrew Lo, Senior Managing Director and Chief
Executive Officer of Invesco Asia Pacific. “We are committed to serving our clients’
needs across India and maintaining our significant presence in Hyderabad as well.”
IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset
Management Company and has since grown to serve over 1.6 million retail investor
folios and over 39,000 empanelled distributors, with over 70% of its AUM in equity and
equity-oriented assets. Invesco also operates an enterprise centre in Hyderabad
employing more than 1,700 staff across a range of global support functions, including
information technology, investment operations, finance, compliance, and human
resources.
“A strong domestic partner will significantly increase the JV’s ability to expand into
more Indian cities and towns, which are driving industry growth. The Indian mutual
fund industry is at an inflexion point with favourable demographics and a rising middle
class which will prefer transparent investment products like mutual funds and ETFs,”
said Saurabh Nanavati, CEO of Invesco Asset Management India Limited, who
will continue to lead the new JV along with the existing management team.
The transaction is subject to customary regulatory approvals. The transaction will have
an immaterial financial impact on Invesco Ltd.
Motilal Oswal Investment Advisors acted as exclusive financial advisor to IIHL.
Crawford Bayley and AZB acted as legal advisors to IIHL & Invesco respectively.
About IndusInd International Holdings Limited (www.indusindinternational.com)
IIHL’s vision is to be a Global Financial Services Institution with a commitment to
excellence in international orientation, innovation, speed, and strict compliance with
the principles of good corporate governance. With a current net worth of USD 2.65 bn,
IIHL is committed to maintaining value accretive dynamic growth through ongoing
investment and acquisition of high-value assets.
IndusInd Bank, established in 1994, is a digitally driven innovative universal Bank with
a widespread banking footprint with over 35 million customers, 6100+ distribution
points across India along with offices at London, Dubai & Abu Dhabi. With 359,000
shareholders, of which 67.67% being marquee International Institutional Investors, its
shares are listed at the Bombay Stock Exchange & National Stock Exchange, whereas
GDRs are listed on the Luxembourg Stock Exchange, with a current market cap of
USD 14.5 bn.
About Invesco Ltd.
Invesco is a global independent investment management firm dedicated to delivering
an investment experience that helps people get more out of life. Our distinctive
investment teams deliver a comprehensive range of active, passive, and alternative
investment capabilities. With offices in more than 20 countries, Invesco managed $1.6
trillion in assets on behalf of clients worldwide as of February 29, 2024. For more
information, visit www.invesco.com/corporate.
