Infrastructure Development Finance Company (IDFC) is scouting for a distribution partner to help it market its asset management company's (mutual fund) products.
"We are looking for an overseas distribution partner. We are interested in a strategic partner and are open to a stake-sale to that partner," an IDFC spokesperson said today.
IDFC MF is interested in distribution of its products overseas and this is where an overseas strategic partner would be able to add value, the spokesperson said.
"In case our foreign partner is interested in buying a stake, we are open to a sale. However, our intention is to have a strategic partner and we will not be off-loading for just getting in capital," the spokesperson said.
However, the company has not yet zeroed-in on any partner and the exercise could take a little time.
Earlier, IDFC's executive director, Vikram Limaye, had said that discussions were being held with several overseas firms as a part of its search for a suitable partner who would help it manage a share of the capital that flows in the Indian market and contributes to its fee income.
The deal could involve the partner making a minority investment in the company, he had said. IDFC is a relative new-comer in the Indian mutual funds industry having entered the market only in early-2008 by acquiring Standard Chartered Bank's mutual fund business for a little over Rs 800-crore.
Since then, IDFC has doubled its assets under management (AUM) and also expanded its footprint across the country.
IDFC asset management company presently has 37 mutual fund schemes and manages assets worth around Rs 26,615-crore.
The company's assets under management (AUM) have declined in the last few weeks mainly because of some redemptions, the spokesperson said.
"This was due to the payments of advance tax and 3G outgo -- it is a normal business happening," the spokesperson added.
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