IndusInd Holdings to raise ₹800 cr for Invesco MF buy

Mumbai: IndusInd International Holdings (IIHL), a Mauritius-based investment holding company promoted by the Hinduja Group, is in discussions with Standard Chartered Bank and other credit funds to raise around ₹800 crore for its acquisition of a 60% stake in Invesco Asset Management (India), according to people familiar with the matter. However, the fundraising process hinges on regulatory approval from the Securities and Exchange Board of India (Sebi), which is still pending.

The acquisition is being done through IIHL, the investment arm of the Hinduja Group. IIHL announced its entry into the mutual fund sector in April 2024 with this deal, and the transaction is now nearing completion. The Competition Commission of India granted approval last year, clearing the way for the acquisition of Invesco Asset Management (India) and Invesco Trustee.

"IIHL is seeking to raise ₹600-800 crore and has engaged in discussions with global lenders, including Standard Chartered and private credit funds," said one of the persons, who did not wish to be identified. "The company is targeting a borrowing rate of around 11-12%, a level that may not generate strong interest from private credit investors."


A spokesperson of Standard Chartered Bank declined to comment while a Hinduja spokesperson did not respond to a request for comment.

IIHL will make the investment through its wholly owned subsidiary IIHL AMC Holdings, which was created specifically for this transaction. The Mauritius-based holding company is in the process of acquiring Anil Ambani-promoted Reliance Capital through an in-court process under the Insolvency and Bankruptcy Court.

While preliminary discussions with financial institutions are underway, the fundraising process cannot proceed until the Securities and Exchange Board of India (Sebi) grants its final approval, another person said. Invesco Trustee and Invesco AMC, approved by Sebi under mutual fund and portfolio management regulations, oversee Invesco Mutual Fund.

Invesco Asset Management (India) reported an average asset base of ₹1,28,676 crore for the quarter ending December 2024, across mutual funds, portfolio management services and offshore advisory.