Bandhan Financial consortium set to buy IDFC AMC

News: As per The Economic Times, Bandhan Financial Holdings has won the bid to buy IDFC Asset Management Company in a deal valuing the AMC at Rs 4,500 crore. The consortium led by the Kolkata-based owner of Bandhan Bank trumped the US based Invesco that partnered with buyout firm Warburg Pincus and Kedaara Capital, paying 3.6% of the assets under management. The winning group includes Lathe Investments Pte. Ltd, an affiliate of Singapore sovereign wealth fund GIC, and local private equity fund ChrysCapital

View: We believe this deal is beneficial for IDFC Ltd as valuation of 3.6% of the AUM seems to be reasonable considering over 60% of the AMC portfolio is into fixed income

Impact: Positive