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IDFC ends higher after CCI OKs divestment of IDFC AMC

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Capital Market
Last Updated : Aug 02 2022 | 6:38 PM IST

IDFC advanced 3.63% to Rs 59.90 after the company said that the Competition Commission of India (CCI) has approved the divestment of IDFC Asset Management Company (IDFC AMC).

On the BSE, 10.90 lakh shares of IDFC were traded in the counter during the day as compared with average daily volumes of 3.22 lakh shares in the past two weeks.

"...The Competition Commission of India has, vide its letter dated August 01, 2022, informed that the Commission, at its meeting held on August 01, 2022, considered the proposed combination and approved the same under sub-section (1) of Section 31 of the Competition Act, 2022,, IDFC said in a statement.

In April this year, a consortium of Bandhan Bank's parent Bandhan Financial Holdings (BFHL), private equity firm ChrysCapital and Singapore's sovereign fund GIC had announced the acquisition of IDFC Asset Management Company for Rs 4,500 crore.

IDFC had informed that the Bandhan consortium was selected through a highly competitive divestment process which witnessed strong participation from strategic players and financial investors.

The deal envisages continuity of the current management team and investment processes at IDFC AMC. This will be supplemented well by Bandhan's brand as well as GIC's and CC's international network and experience, which will aid IDFC AMC in further cementing its position in the asset management industry and propel further growth, IDFC said in a statement on Wednesday.

Established in 2000, IDFC AMC is India's 9th largest asset manager by Asset Under Management (AUM), with an on‐the‐ground presence in over 50+ cities and investors in 750+ cities and towns across the country. It manages over Rs 1,15,000 crore of AUM at the end of 31 March 2022.

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IDFC is a financial services company in India and it advances infrastructure development in the country.

The Corporation had reported a net profit of Rs 3.27 crore in Q4 FY22 as against a net profit of Rs 25.85 crore in Q4 FY21, down 87.4% YoY. Total income during the quarter increased by 73.9% YoY to Rs 8.07 crore.

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First Published: Aug 02 2022 | 3:53 PM IST

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