Taurus MF plans to sell 50% to a foreign co

NEW DELHI: Taurus mutual fund is looking to dilute as much as 50% of its equity in favour of a foreign partner. The asset management company, which has 12 schemes running, is looking to raise Rs 40 crore through the sale of a 50% stake.

“We are looking to dilute a significant chunk of our equity to a foreign partner. The promoters can sell a part of their equity or there can be infusion of fresh equity, which can raise both the valuation and reserves of the company,” said RK Gupta, managing director, Taurus Mutual Fund.

The fund is looking to dilute anywhere between 25% and 50% of its equity. According to the Association of Mutual Funds of India website, the assets under management of Taurus Mutual Fund for the month of April stood at Rs 301.85 crore.

Taurus was set up in 1994. Initially, IFC Washington, Edinburgh Fund Managers London and Lazard India were the major shareholders in the company. The mutual fund industry in India, dominated by a few big players, is expected to witness a lot of churn, with many smaller players being forced to either dilute a significant share, or get acquired.

A lot of foreign players are looking to enter the asset management sector here, with Nomura being the latest foreign company looking to enter India. Korean financial services companies Shensei is said to be in talks with Andhra Bank, while Mirae is setting up a 100% subsidiary in India.

British investment company Dawnay Day recently got Sebi approval to roll out its mutual fund business in India.
The mutual fund industry has been growing at a rapid pace. The AUM of the industry grew 36% in the past one year, from Rs 257,108.65 crore in April 2006 to Rs 350,441 crore as on April 2007.