Edelweiss Financial Services Ltd informed stock exchanges Tuesday that its subsidiary Edelweiss Asset Management Limited (EAML) will be acquiring the onshore fund schemes managed by JPMorgan Asset Management India Private Limited (JPMAM). The assets under management (AUMs) of JPMorgan Asset Management India were valued at about Rs 7,081 crore.
The combined AUMs of JPMorgan Asset Management India and Edelweiss would be about Rs 8,757 crore, said Edelweiss Asset Management in a separate statement issued Tuesday.
The acquisition comprises JPMorgan Asset Management's India-based onshore mutual fund business and the international fund of funds, subject to regulatory approvals, the statement said, adding that Edelweiss Asset Management will absorb "majority of employees of JPMAM."
Stocks of Edelweiss Financial Services ended 2.11 percent lower Tuesday at Rs 58.05 on the BSE.
"Given the complementary business advantages and the significant business that JPMAM has built, this acquisition is a natural win for both Edelweiss and JP Morgan," said Rashesh Shah, chairman & CEO, Edelweiss Group.
The acquisition, Edelweiss Asset Management said, will strengthen Edelweiss Group's Rs 31,000 crore global asset management businesses, which include the existing mutual fund business, credit alternative funds, offshore funds and equity funds.
The acquisition will spur Edelweiss Asset Management's growth, said Vikaas M Sachdeva, CEO, of EAML. "We are sure this acquisition will give further impetus to EAML and move it to the next level of growth."
India has 44 mutual funds with combined AUMs worth about Rs 12,62,842 crore as of Feb. 29, down from Rs 12,73,712 crore as on Jan. 31, according to the Association of Mutual Funds in India.
The slump in Indian stock markets resulted in mutual fund (MF) investors putting it a mere Rs 2,522 crore in equity MFs in February 2016, the lowest in 21 months.