IndusInd International Holdings (IIHL), part of the Hinduja Group, has ventured into the asset management sector by acquiring a 60 percent stake in Invesco Asset Management India (IAMI), the Indian arm of US-based Invesco.
Invesco Mutual Fund (MF) ranks as the 17th largest fund house in India, managing an average of over Rs 74,300 crore in assets during the March quarter. The India arm oversees nearly Rs 85,400 crore through mutual fund schemes and offshore advisory services. The partnership between IIHL and Invesco will establish a joint venture (JV), with Invesco retaining a 40 percent stake. Pending regulatory approvals, the two entities will serve as sponsors for the fund house.
IIHL, the promoter entity of IndusInd Bank, aims to bolster the distribution network of Invesco MF, leveraging its extensive network of over 11,000 touchpoints across India and a customer base of 45 million.
The acquisition of Invesco signifies Hinduja Group's broader strategy to expand across the financial spectrum. Following its successful bid to acquire Reliance Capital through the Insolvency and Bankruptcy Code (IBC) process, the conglomerate is extending its control over various subsidiaries of the troubled financial services company, spanning life, general, and health insurance, broking, and asset reconstruction.
In the Indian mutual fund landscape, bank-backed fund houses dominate the market. SBI MF, ICICI Prudential MF, and HDFC MF lead as the top three fund houses, with Kotak MF, Axis MF, Bandhan MF, and Canara Robeco MF featuring among the top 15. In many instances, the sponsor bank serves as the primary distributor for these fund houses. Nearly all major banks in India operate associated fund houses, with Bandhan Bank being a recent addition to the sector. Last year, a consortium led by Bandhan Financial Holding completed the acquisition of IDFC Asset Management Company.
The IIHL-Invesco partnership aims to capitalize on Invesco's global product portfolio and expertise in processes, complemented by IIHL's robust distribution network. This strategic collaboration underscores the Hinduja Group's commitment to diversifying its presence across the financial services sector in India.
