New Delhi: Muthoot Finance on Friday said it will acquire IDBI Asset Management for 215 crore to enter mutual fund space.

The deal, which is subject to necessary regulatory approvals including markets regulator Sebi, is expected to be completed by February-end 2020, Muthoot Finance said in a statement.

Promoted by IDBI Bank in 2010, IDBI Mutual Fund is one of the profit making AMCs in the space with an asset base of over 5,300 crore. The fund house runs 22 schemes with robust asset base across products, geography and investors.

Muthoot Finance said it has "entered into a definitive agreement to acquire IDBI Asset Management (AMC) and IDBI MF Trustee Company".

Upon completion of the transaction, Muthoot Finance will purchase 100 per cent equity shares of IDBI AMC and IDBI MF Trustee Company held by the sellers for a total consideration of 215 crore.

"IDBI Mutual Fund is a trusted player in the mutual fund space with a steady loyal customer base. At Muthoot we pride ourselves in venturing into mutual fund space through such an established player.

"The business objectives and customer centric approach that we follow within Muthoot Group is well aligned with the business objectives of mutual fund industry. We are excited to venture into this new path in the financial services space," Muthoot Finance MD George Alexander Muthoot said.

ICICI Securities acted as the advisors in the transaction to sellers. AZB & Partners was the legal advisor to Muthoot Finance, while J Sagar Associates acted as the legal advisor to the sellers.

In October, Baroda Asset Management and BNP Paribas Asset Management announced to merge their businesses in a bid to leverage each other's strengths to offer products for retail and institutional investors.

Currently, the country's mutual fund industry has 44 players managing assets to the tune of more than 26 lakh crore.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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