Sundaram AMC gets SEBI's nod to acquire Principal India
IANS 19 November 2021
Sundaram Asset Management Company Limited (Sundaram AMC) on Friday said it has received the regulatory approval to acquire the asset management business of Principal Asset Management Pvt Ltd (Principal India).
 
Sundaram AMC is a 100 per cent subsidiary of non-banking finance major Sundaram Finance Ltd.
 
Sundaram AMC will acquire the schemes managed by Principal India and acquire 100 per cent of the share capital of Principal Asset Management Pvt. Ltd., Principal Trustee Company Pvt. Limited, and Principal Retirement Advisors Pvt. Ltd., as originally announced on the January 28, 2021.
 
"This acquisition is a natural step in our aspiration to become a sizeable player in the asset management industry. The combined business of both the entities will achieve an aspirational landmark of Rs 50,000 crore. We will be able to leverage the combined platform to derive significant synergies," Harsha Viji, Executive Vice Chairman, Sundaram Finance said.
 
The Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI) have given their final nod for the acquisition, it said.
 
The transaction is subject to compliance with SEBI prescribed processes and fulfillment of mutually agreed conditions precedent to deal closure.
 
As per regulatory requirements, there will be an 'exit load free window' for investors to redeem their investments, where such exit load is applicable.
 
Post deal closure, the schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories.
 
All investors and distributors of Principal India schemes will become investors/distributors of Sundaram.
 
"We look forward to complementing our existing Equities fund management talent with the addition of the team from Principal India. We endeavour to retain and absorb Principal India's distribution franchise with minimal disruption to their commercial terms. The existence of the same back-office service provider (RTA) is expected to smoothen the transition for existing customers and distributors," Sunil Subramaniam, Managing Director, Sundaram AMC said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Moneylife Foundation Study: SEBI Actions Are Capricious and Appellate Tribunal Too Benevolent to Wrongdoers
Sucheta Dalal, 19 November 2021
Investors are often frustrated at the market regulator’s failure to initiate quick deterrent action, even where the most brazen price manipulation, insider trading and disclosure lapses are actively discussed on the social media....
SAT Asks Sahara, Subrata Roy To Deposit Rs2,000 Crore In 4 Weeks with SEBI
Moneylife Digital Team 19 November 2021
The Securities Appellate Tribunal (SAT) asks Sahara group company Sahara India Commercial Corporation Ltd and its then directors, including Subrata Roy, to deposit within four weeks Rs2,000 crore with market regulator Securities and...
SEBI SCORES Still Has over 4,100 Complaints To Resolve; 29 Are Pending since Past 3 Months
Moneylife Digital Team 17 November 2021
Market regulator Securities and Exchange Board of India (SEBI) says its SEBI Complaints Redress System (SCORES) platform has more than 4,100 complaints pending, with as many as 29 complaints pending for more than three months (90...
RBI Withdraws 104 Redundant and Duplicate Circulars As Recommended by RRA
Moneylife Digital Team 16 November 2021
The Reserve Bank of India (RBI) has decided to withdraw 104 regulatory instructions and circulars that have become redundant or were duplicated as per the Regulations Review Authority's interim recommendation (RRA). 
 
In a...
Free Helpline
Legal Credit
Feedback