The asset management company, Sundaram Asset Management, of Sundaram Finance announced the 100 per cent acquisition of the AMC business of Principal Asset Management in a press release. The transaction is subject to regulatory approvals processes prescribed by SEBI. The transaction has been done at an undisclosed amount.
Sundaram boasts of assets under management to the tune of Rs 40000 crore, majority of which is in equity-oriented schemes while Principal has assets worth Rs 7447 as of 31 December 2020 out of which about 90 per cent is in equity-oriented schemes as per the press release. Sundaram’s operations are diversified across 17 equity and 11 fixed income schemes.
As of 31 December 2020, Sundaram was ranked 17th while Principal was ranked 24th as per their total asset under management across fund houses in India.
Commenting on the acquisition, Mr Sunil Subramaniam, Managing Director, Sundaram Asset Management Company said, “This transaction will strengthen our presence in the marketplace with the addition of a range of schemes with a good long term performance track record across the large and mid-cap segments. This will complement our business which has traditionally been weighted towards the mid-and small-cap segment.”
Mr Pedro Borda, Chief Operating Officer, Principal International said, “As part of a systematic review of the company’s portfolio of businesses and global market dynamics, we’ve made the decision to exit the asset management business in India. As we transition the business, customers and distributors will remain our top priority. We believe that they will benefit from Sundaram Asset Management’s larger mutual fund platform in this market.”