IDFC to sell IDFC AMC to Bandhan led consortium for Rs4,500 crore; stock slumps 5%

7 Apr 2022 , 09:23 AM

IDFC Limited and a consortium comprising Bandhan Financial Holdings, GIC and ChrysCapital have entered into a definitive agreement to acquire IDFC Asset Management Company and IDFC AMC Trustee Company, from IDFC, for Rs4,500 crore. The company has declared an interim dividend of Re 1 per equity share.

“The board of directors of IDFC Financial Holding Company Limited (IDFC FHCL) at their respective meetings held on April 06, 2022, have inter alia considered binding bids received in connection with divestment of IDFC Asset Management Company Limited (IDFC AMC) along with IDFC AMC Trustee company Limited (IDFC AMC Trustee) and have approved sale of the entire shareholding of IDFC AMC and IDFC AMC Trustee held by IDFC FHCL to a consortium comprising of Bandhan Financial Holding Limited, Lathe Investment Pte. Ltd. (affiliate of GIC), Tangerine Investments Limited and Infinity Partners (affiliates of ChrysCapital),” company said in a filing on Wednesday.

The Proposed Transaction will be completed upon receipt of requisite regulatory and other approvals, as applicable, and completion of closing related actions mutually agreed between the parties.

The consideration for the Proposed Transaction is Rs4,500 crore on a fully diluted basis and subject to customary price adjustments at the closure. This consideration is in addition to receipt of Rs250 crore as dividend from IDFC AMC in March 2022. 

At around 9.25 am, IDFC Ltd was trading at Rs64.90 per share down by Rs3.5 or 5.12% from its previous closing of Rs68.40 per share on the BSE.