Religare Enterprises (REL) one of the leading financial services groups of India, confirmed that it has agreed to acquire Lotus India asset management company (Lotus India AMC) from it`s majority shareholders, Alexandra Fund Management an affiliate of Fullerton Fund Management company and Sabre Capital. The acquisition is subject to the regulatory approvals. Religare didn`t disclose the amount for which the acquisition was done, which is subject to regulatory approval.
Lotus India AMC manages assets in excess of Rs 50 billion domestic mutual funds. Religare after the acquisition will infuse additional funds into the schemes of Lotus India AMC. The existing investors of Lotus India will be supported and served by Religare.
Lotus India AMC is a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide.
Religare has an existing presence in the asset management space through a joint venture with Aegon. The company made the acquisition with intent to further strengthen its position in asset management space in the Indian market.
Confirming this development Sunil Godhwani-CEO and managing director, Religare Enterprises said, ``We are delighted to take on a business that has been backed and promoted by institutions of such stature and pedigree and look forward to taking it to the next level of growth. Like all other businesses that Religare operates globally we are committed to building it further as a business of excellence with a leadership position.``
Gerard Lee, CEO Fullerton Fund Management said, ``We are pleased to transfer ownership to a leading financial services brand such as Religare with its strong reach and distribution might. Under the new stewardship we firmly believe that Lotus will scale greater heights and we see this stake sale as the beginning of a new strategic relationship with Religare.``
Shares of the company gained Rs 3.5, or 1.08%, to trade at Rs 329. The total volume of shares traded was 18,134 at the BSE (3.10 p.m., Tuesday).
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