IndusInd International Holdings Ltd. (IIHL), linked to the prestigious Hinduja Group as an overseas investment holding arm, has reached a pivotal deal to purchase a major share of Invesco Asset Management India Ltd. (IAMI). IIHL’s acquisition accounts for an impressive 60% stake, marking a significant shift in the ownership structure of the Indian asset management firm. The financial specifics of this transaction were not disclosed to the public.
Amid the evolving landscape of the financial sector in India, Saurabh Nanavati, the CEO of IAMI, will helm the joint venture, maintaining his leadership role. He will be supported by the current executive team to ensure a seamless transition and continued growth. IAMI represents the Indian division of the global asset management giant Invesco Ltd., which boasts over $1.6 trillion in assets under its international purview. Through IIHL’s promoter status of IndusInd Bank, a new synergy between banking and asset management is anticipated.
According to the details revealed in their joint statement, Invesco remains invested in the joint venture with a 40% holding. Sponsor status will be shared by both IIHL and Invesco, alluding to a collaborative partnership moving forward within the venture.
IAMI’s financial heft is not to be underestimated, with its combined onshore and offshore advisory and assets under management reaching a commendable ₹85,393 crore as reported on March 31, 2024. The company’s operational breadth spans 40 Indian cities, establishing a solid ground presence in one of the world’s most rapidly developing financial markets.
Ashok Hinduja, Chairman of IIHL, shared an enthusiastic vision of transformation, where the merger is expected to position IIHL as a formidable entity in the Banking, Financial services, and Insurance (BFSI) sector. According to Hinduja, this partnership is more than a business venture; it represents the dawn of a new era of innovative progress in India’s Asset Management industry.
Moses Harding, the CEO of IIHL, further highlighted India’s favorable investment climate, driven by rising prosperity, surging investor confidence, and demographic advantages. He characterized the timing of this venture as optimal, where the expected trajectories align perfectly with India’s promising market prospects.
Adding international perspective to this venture, Andrew Lo, Senior Managing Director and CEO of Invesco Asia Pacific, underscored both companies’ collective commitment to expanding their high-quality investment services, catering effectively to the needs of India’s burgeoning base of domestic investors. Lo reiterated the importance of their Hyderabad presence, signifying ongoing dedication to serving clients across India, as well as maintaining a strong operational foothold in the city.
IAMI’s footprint in India began in 2008 after acquiring Lotus India Asset Management Company. Since then, IAMI has experienced significant growth, now servicing over 1.6 million retail investor folios. Its relationship with over 39,000 empanelled distributors is notable, particularly given that over 70% of its assets under management are concentrated in equity and equity-oriented assets.
The company also prides itself on its Hyderabad-based enterprise centre, where over 1,700 staff members occupy roles across vital global support functions. These include information technology, investment operations, finance, compliance, and human resources, reinforcing the company’s robust infrastructure to serve an ever-expanding international clientele.
The strategic acquisition by IIHL marks a proactive advancement within India’s financial landscape and symbolizes a fruitful convergence between domestic banking and global asset management expertise. The foresight and commitment exhibited by both IIHL and Invesco promise new growth opportunities, innovation, and sustained success in the asset management sector.
