US-based mutual fund provider Invesco is likely to acquire 49% stake in Religare asset management (RAMC) for about Rs4.6bn ($87m), in an effort to expand its range of investment capabilities to retail and institutional clients across the globe.
An undisclosed executive was quoted by The Economic Times as saying, "The deal value is based on 6.4% of the closing AUM at the time of receiving regulatory approval."
"The fund house is currently managing AUM of Rs 14,600 crore, which is expected to cross Rs 15,000 crore by the time the approval comes."
Invesco has asset under management of about $670bn and market capitalisation of $11bn.
Declining to reveal valuation of the deal, Religare Enterprises Group CEO Shachindra Nath said, "This investment is a validation of Religare’s belief in the long term growth potential of the Indian financial services industry."
"We believe that both our retail and offshore businesses would be propelled to the next level of their growth journey."
The transaction, if finalized, will be the first to take place after the recent regulatory breather provided by SEBI to the mutual fund industry in August 2012.