Twitter
Advertisement

Kotak Mahindra to buy PinBridge Mutual Fund: is more consolidation inevitable?

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of Kotak Mahindra Bank Limited (KMBL) is set to acquite the domestic chemes of PineBridge Investments Asset Management Co. Kotak Mahindra AMC has asset around Rs 37000 crore while the Pine Bridge acquisiton will add another Rs 650 crore to its portfolio.

Media reports suggest that this points to further consolidation in the mutual fund industry where the smaller players are finding it difficult to survive.

Equitybulls quoted Gaurang Shah, President - Asset Management, Life Insurance and International Business, KMBL, saying, "We have agreed to acquire the schemes of PineBridge Mutual Fund. The assets included are equity oriented which provides a further enrichment to our equity base. We have an appetite for further acquisitions which can create value for us and we would be keen to consider such opportunities."

Sebi had earlier raised the minimum capital requirement for an asset management company to Rs 50 crore from the present Rs 10 crore, and several fund houses have to considerably raise capital to meet the requirements. Under such circumstances, given not enough profitability in the scetor, consolidation seems inevitable. 

According to some estimates earlier this year, there are around 44 fund houses in the country with only 1% of AUM being udner the bottom 10 houses. 

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement