JP Morgan AMC revives efforts to exit India

The latest transaction between Reliance Mutual Fund and Goldman Sachs Asset Management India marked the seventh exit of a foreign fund house from the domestic asset management business. But if industry sources are to be believed there are more foreign players who are on the block. According to people in the know, JP Morgan Asset Management Company (AMC) India is scouting for potential buyers and has appointed an investment banker for the same.

"JP Morgan AMC recently approached us through an investment banker," said a chief executive officer at fund house.

An email query sent to JP Morgan AMC seeking comments on the issue didn't elicit any response. There was a similar buzz earlier this year that the fund house has been put on the block. However, the plan had taken a back seat to the crisis caused by the Amtek Auto default. The fund house had an exposure of nearly Rs 200 crore to Amtek Auto debt paper through two of its schemes.

 

Sources said JP Morgan has once again revived its plan to exit India and the fund house hinted at this in a recent communication to its employees.

A deal now is likely to fetch JP Morgan less than what it could have got at the start of the year. The fund house's assets under management (AUM) declined by 20 per cent in the September quarter.

As on 30 September, JP Morgan MF had an average asset under management (AUM) of Rs 12,455 crore compared to Rs 15,641 crore in the previous quarter.