Rajan Raheja picks up 39% stake in ING MF

The Rajan Raheja-controlled Hathway Investments has acquired ING Vysya Bank's 39 per cent stake in the ING Vysya mutual fund for an undisclosed sum, ING Investment Management (ING IM) said today. Following the change in the ownership, the name of ING Vysya MF has been changed to ING Mutual Fund.

"We are happy to partner ING in its AMC business in India. We believe the company has a bright future," Rajan Raheja, chairman of Hathway said in a release.

The parent firm now holds 42.5 per cent stake in ING Vysya Mutual Fund, while Hathway owns 39 per cent and Kirti Equities controls 18.5 per cent. ING IM is the asset management company of ING Vysya Mutual Fund. It would continue to manage the business, along with its Optimix multi-manager mutual fund schemes. "The decision to partner the Rajan Raheja Group follows the relationship with ING Vysya Life insurance. The group has significantly contributed to the life insurance business and we envisage similar support for the growth plans of ING MF," Mike Ferrer, ING IM regional general manager, said.

Realty developer Rajan Raheja also holds a 50 per cent stake in ING Life Insurance. Raheja's Exide Industries had bought this stake in 2005.

Raheja recently exited his 25 per cent holding in the Franklin Templeton Mutual Fund. By picking up a stake in the ING MF, Raheja has re-entered the asset management business in the country, which is growing at a phenomenal rate.

ING Vysya MF had total assets worth Rs 2,777.81 crore at the end of March.