Entering Mutual Fund Space To Cater To Customers’ ‘Changing Needs’, Muthoot Finance CFO Says
Muthoot Finance’s acquisition of IDBI Mutual Fund will help take care of customers’ changing needs, CFO Oommen K Mammen says.
Muthoot Finance Ltd.’s foray into mutual funds by acquiring IDBI Asset Management Ltd. will help cater to the changing needs of its two lakh customers, its Chief Financial Officer Oommen K Mammen said.
“If we don't provide alternative investment products, they may look at other opportunities,” Mammen told BloombergQuint in an interview, adding that offering mutual fund options will help take care of their changing needs. “Mutual funds are the best asset class.”
The acquisition worth Rs 215 crore is subject to regulatory approval and is expected to be completed by February next year, the Kochi-based gold loans provider said in a statement.
Muthoot Finance will purchase 100 percent equity shares of IDBI AMC and IDBI MF Trustee Company for a total consideration of Rs 215 crore, according to exchange data.
IDBI Mutual Fund has an asset base of over Rs 5,300 crore. Muthoot Finance will acquire 66.67 percent stake in IDBI AMC from IDBI Bank and 33.3 percent from IDBI Capital Market & IDBI Securities.