Muthoot Finance to acquire IDBI's asset management, mutual fund businesses for Rs 215 crore

Country's largest gold loan non-banking finance company, Muthoot Finance Ltd on Friday entered into a definitive agreement to acquire IDBI Asset Management Ltd and IDBI Mutual Fund Trustee Company Ltd.

The move will pave the way for Muthoot's entry into mutual fund asset management space.

According to an official statement from the company, Muthoot will shell out Rs 215 crore to purchase 100% equity shares of IDBI Asset Management and IDBI MF Trustee.

"Upon completion of the transaction, Muthoot Finance will purchase 100% equity shares of IDBI Asset Management and IDBI MF Trustee for a total consideration of Rs 215 crore," read the statement.

The transaction, which is likely to be closed by the end of February next year, is subject to approval from regulators, including the Securities and Exchange Board of India (SEBI). Upon completion, both IDBI Asset Management and IDBI MF Trustee will become wholly-owned subsidiary companies of Muthoot Finance.

"We are excited to venture into this new path in the financial services space. We are equally excited to partner with the strong, experienced and enthusiastic management team at IDBI Mutual Fund as we embark upon the next level of our journey," said George Alexander Muthoot, Managing Director of Muthoot Finance.

IDBI Mutual Fund is one of the companies in the mutual fund space with assets under management worth Rs 5,300 crore. The firm runs 22 schemes with robust assets under management across products, geography and investors