L&T Finance Holdings to sell L&T Mutual Fund to HSBC for ₹3,200 crore

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L&T Finance Holdings announced on Thursday 23 December that it will sell L&T Investment Management to HSBC AMC for $425 million (about $3,200 million). L&T Investment Management is a wholly owned subsidiary of L&T Fin Holdings and the asset manager of L&T Mutual Fund. L&T Mutual Fund is currently the 13th largest fund house in the country.

In a report published earlier, Moneycontrol had said that HSBC is in the final round of talks to buy the mutual fund arm of L&T Fin Holdings.

L&T Finance Holdings said in a regulatory filing, “The Board of Directors of L&T Finance Holdings Limited met on Thursday. In this, all 100 per cent paid-up shares of L&T Investment Management Limited have been transferred to HSBC Asset Management (India) Private Limited (HSBC AMC). ).

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In addition to the $425 million received under the deal, L&T Finance Holdings will also be entitled to additional cash flowing into L&T Investment Management until the acquisition is completed. Meanwhile, both L&T Investment Management and HSBC AMC will ensure that their investors and counterparties continue to be serviced as before.

Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings Ltd said, “This transaction with HSBC is in line with our strategy to unlock value for our subsidiary companies, which will help us strengthen our balance sheet for the lending business. This will help us accelerate the retrieval of the lending portfolio, which is one of our long-term goals.”

Let us inform that IDFC is also in the process of selling its mutual fund business- IDFC MC. According to information received from sources, IDFC may also follow the benchmark adopted in this deal of L&T and HSBC for the correct valuation of its mutual fund business.


Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

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