Religare Enterprises has received approval from the Competition Commission (CCI) to sell a controlling 51 per cent stake in its mutual fund business, Religare Invesco AMC, to foreign partner Invesco.
Religare had not disclosed the exact reasons for the sale, but sources had said that it could be due to promoters wanting to monetise some assets to meet other financial obligations.
Religare held 51 per cent in the JV while Invesco had 49 per cent ownership.
In a tweet today, CCI said that it "approves increase in shareholding of Invesco Hong Kong in Religare AMC and Religare Trustee from 49 per cent to 100 per cent".
Invesco had purchased 49 per cent stake in March 2013, wherein it was also given an option to further increase its stake before March 2016.
While a number of foreign fund houses have exited the Indian mutual fund industry, there have not been many cases where Indian entities have sold the asset management business.
While announcing the deal in November, last year, Invesco's Senior Managing Director and Head of Asia Pacific Andrew Lo had said that it would further deepen its presence in India by taking full ownership of this business.
Religare Group CEO Shachindra Nath had termed Invesco's decision as "an endorsement of the Indian macros" and also of the overall quality of the management team.
Post the deal, Saurabh Nanavati will continue as CEO, along with the existing senior management team of the fund house.
