Religare Mutual Fund may sell stake to foreign financial services firm

Is Religare Mutual Fund set to make a “big announcement” soon? That is the speculation doing the rounds in the mutual fund industry. The buzz is that Religare Mutual, which manages assets worth Rs 11,000 crore, is in talks to sell a stake to a foreign financial services firm.

Grapevine has it that a Japanese asset management firm and two other asset managers are in the race to buy a stake in the firm. Religare Mutual Fund officials denied this. “This is incorrect and we categorically deny this,” said a Religare Mutual Fund spokesman.

However, a source close to Religare Mutual Fund confirmed that the fund house is in talks for a “foreign partnership”, which will enable it to bring more investments through the qualified foreign investor (QFI) route and also launch offshore investment products.