L&T Investment Management Limited, a formerly owned subsidiary of the company and the asset manager of L&T Mutual Fund
L&T Finance Holdings on Thursday announced that it will sell its mutual fund business to HSBC AMC. The deal is worth Rs 3200 crore. After this deal, HSBC will buy entire equity shares of L&T Investment Management Limited (LTIM), a wholly owned subsidiary of L&T Finance Holdings. L&T Mutual Fund is currently the 13th largest fund house in the country.
The deal was discussed in the meeting of the Board of Directors
L&T Finance Holdings has said in a regulatory filing that the Board of Directors of L&T Finance Holdings Limited met on Thursday. It considered the sale of all 100% paid-up shares of L&T Investment Management Limited to HSBC Asset Management (India) Private Limited (HSBC AMC). L&T Investment Management Limited is a formerly owned subsidiary of the company and the asset manager of L&T Mutual Fund. The deal is yet to get approval from various regulators and shareholders.
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This arrangement will remain till the completion of the deal.
In addition to the Rs 3,200 crore received under the deal, L&T Finance Holdings will also be entitled to additional cash flowing into L&T Investment Management till 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.
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