Zerodha-rival Groww gets approval to acquire Indiabulls mutual fund business
- Stocks and mutual funds platform Groww in May had said it would acquire Indiabulls Mutual Fund for a total of ₹175 crore
The Competition Commission of India (CCI) on Thursday gave its approval to stock and mutual funds platform Groww's parent Nextbillion Technology Pvt Ltd's to acquire Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company. Nextbillion Technology (Groww Group) is India's investment tech platform.
The transaction involves a single share purchase agreement executed between the acquirer, Indiabulls Asset Management Company Ltd (IAMCL) and Indiabulls Trustee Company Ltd (ITCL) and the Indiabulls Housing Finance Ltd, as per a combination notice filed with the regulator.
"Commission approves acquisition of Indiabulls Asset Management Company and Indiabulls Trustee Company by Nextbillion Technology," said the regulator in a tweet.
Groww in May had said it would acquire Indiabulls Mutual Fund for a total of ₹175 crore, as reported PTI. The acquisition will allow Groww to create newer investment products, as the operations team of IBHFL’s mutual funds business joins Groww. Taking over IBHFL’s mutual fund business will also pave a strong revenue moat for the startup, which is expected to gain from the expense ratio charged on the mutual fund products offered through the asset management company.
Bengaluru-based Groww founded in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal offers new ways for stockbroking, equity-linked savings, SIPs, IPOs, ETFs and direct mutual funds.
Earlier this month, brokerage firm Zerodha's founder Nithin Kamath had announced that the company received market regulator SEBI's in-principle approval to start its mutual fund business. Zerodha had applied for a licence to start its asset management company (AMC) in India in February 2020, a month before Covid-19 pandemic hit the country.
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Business NewsMutual FundsNewsZerodha-rival Groww gets approval to acquire Indiabulls mutual fund business
First Published:10 Sep 2021, 11:17 AM IST
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