The management of HDFC Mutual Fund announced the completion of the acquisition of schemes of Zurich India MF.
With this acquisition, HDFC MF is now among the top three private mutual fund players in the country with assets of over Rs 11,000 crore and a portfolio of over 19 investment products.
The acquisition is being done at a price slightly less than 4.5 per cent of the assets of Zurich. This come to roughly around Rs 148 crore. As of May 31, the total assets under the management of Zurich MF stood at Rs 3,313 crore.
Milind Barve, managing director of HDFC MF, said that the pricing had been arrived at after considering the seven day average assets of the fund at the time that the merger was announced sometime in March this year.
Barve made it clear that no merger or integration of the schemes of the two funds would be undertaken at the moment. All the Zurich schemes will now be sold under the HDFC brand name.
While an integration of the employees of Zurich MF into HDFC MF is taking place, around 15-20 people from the former have started looking for jobs since there will be no place to absorb them.
Most of the senior functionaries with the exception of Zurich MF president S V Prasad, will form part of the merged entity.
Barve said,
