Infrastructure Development Finance Company (IDFC) is scouting for a distribution partner to market its mutual fund products.
"We are looking for an overseas distribution partner. We are interested in a strategic partner, and are open to a stake sale to that partner," an IDFC spokesperson told PTI here today.
IDFC MF is interested in distributing its products overseas, the spokesperson said, adding that this is where an overseas strategic partner would be able to add value.
"In case our foreign partner is interested in buying a stake, we are open to a sale. However, our intention is to have a strategic partner and we will not be off-loading for just getting capital," the spokesperson said.
But the company is yet to zero-in on a partner and the exercise could take some more time, he added.
Earlier, IDFC Executive Director Vikram Limaye had said that discussions were being held with several overseas firms as part of its search for a suitable partner, which would help it manage a share of the capital that flows into the Indian market and contributes to its fee income.
The deal may require the partner to make a minority investment in the company, he said.
IDFC, a relative newcomer in the Indian mutual funds industry, had entered the market only in early 2008 by acquiring Standard Chartered Bank's mutual fund business for a little over Rs 800 crore.
Since then, IDFC has doubled its assets under management (AUM) and also expanded its footprint across the country.
The IDFC asset management company currently has 37 mutual fund schemes, and manages assets worth around Rs 26,615 crore.
The company's AUM declined in the last few weeks mainly because of some redemptions, the spokesperson said.
"This was due to the payments of advance tax and 3G outgo -- it is a normal business happening," the spokesperson added.
