HSBC Asset Management (India) Private Ltd has entered into an agreement with L&T Finance Holdings Limited (LTFH) to fully acquire L&T Investment Management Limited (LTIM) for $425 million. LTIM is a wholly-owned subsidiary of LTFH and the investment manager of the L&T Mutual Fund.
With assets under management (AUM) of Rs 803 bn and over 2.4 million active folios as of September 2021, LTIM is currently ranked as the 12th largest mutual fund management company in India. LTIM reported a pre-tax profit of Rs 1.85 billion, income of Rs 3.48 bn and costs of Rs 1.63 bn for the financial year ended March 2021. LTIM offers a distribution platform, encompassing leading banks, regional distributors, 50,000+ independent financial advisers, established digital platforms and a footprint across 65 locations throughout India.
Following the completion of the acquisition, and subject to regulatory approvals, HSBC intends to merge the operations of LTIM with that of its existing asset management business in India, which had AUM of Rs 117 bn as of September 2021.
