IDFC : Bandhan Financial Holdings, GIC and ChrysCapital consortium set to acquire IDFC AMC

Bandhan Financial Holdings, GIC and ChrysCapital consortium set to acquire IDFC AMC

Mumbai, Wednesday, April 06, 2022: IDFC Limited ("IDFC") and a consortium comprising Bandhan Financial Holdings Limited ("BFHL"), GIC ("GIC") and ChrysCapital ("CC") have entered into a definitive agreement to acquire IDFC Asset Management Company Limited ("IDFC AMC") and IDFC AMC Trustee Company Limited from IDFC Limited, for a consideration of INR 4,500 crore subject to receipt of necessary regulatory approvals and customary closing conditions.

The Bandhan consortium was selected through a highly competitive divestment process which witnessed strong participation from strategic players and financial investors. This is a highly tracked acquisition and will be the largest deal in the Indian asset management industry to date.

The agreement envisages continuity of the current management team and investment processes at IDFC AMC, helping unitholders benefit from consistency in the high-quality investment approach IDFC AMC is reputed for. This will be supplemented well by Bandhan's brand as well as GIC's and CC's international network and experience which will aid IDFC AMC in further cementing its position in the asset management industry and propel further growth.

Anil Singhvi, Chairman of IDFC Limited commented: "This transaction is a significant milestone in our plan of unlocking value and the consideration demonstrates strong position of IDFC AMC in the Indian Mutual Fund space. We have achieved signing within 6 months of the Board's decision to divest, which further demonstrates IDFC Board's commitment to consummate the merger of IDFC Limited and IDFC Financial Holding Company with IDFC First Bank. The Bandhan consortium with its strong brand and resources will further strengthen distribution of products and improving overall experience for IDFC AMC's investors and distributors."

Karni S Arha, Managing Director, Bandhan Financial Holdings Limited said: "Bandhan has always focused on financial inclusion and making formal financial services available to the masses. We believe that the asset management industry will be one of the fastest growing segments in the Indian financial services industry and hence has been identified as a key vertical in our future growth plans. The acquisition of IDFC AMC provides us with a scaled-up asset management platform, with a stellar management team and a pan India distribution network. IDFC AMC could benefit significantly from the Bandhan brand and continue strengthening its position in the asset management industry. Also, we are happy to partner with marquee investors such as GIC & ChrysCapital and are confident that this venture will enhance value for all the stakeholders of Bandhan and IDFC AMC."

Choo Yong Cheen, Chief Investment Officer of Private Equity, GIC said: "GIC is pleased to continue our partnership with the Bandhan group and ChrysCapital through this new investment in IDFC AMC. We believe IDFC AMC is in a favourable position to capture the strong secular growth in the currently under-penetrated Indian asset management industry."

Mr Ashish Agarwal, Managing Director, ChrysCapital said: "ChrysCapital is very excited to partner with BFHL and GIC to buy out IDFC AMC, a quality platform with a seasoned management team. The Company is well poised for the future with strong industry tailwinds including increasing financialization of savings and a growing equity culture amongst the younger generation."

Citigroup Global Markets India Private Limited acted as the exclusive financial advisor and Cyril Amarchand Mangaldas as the legal advisors to IDFC Limited. JM Financial Limited acted as the exclusive financial advisor and Khaitan & Co and Trilegal as the legal advisors to the Bandhan consortium.

IDFC Asset Management Company Limited
Established in 2000, IDFC AMC manages over INR 1,15,000 crore of Asset Under Management (AUM) at the end of March 31, 2022 for over 1 million investor folios representing leading institutions, corporates, family offices and individual clients. IDFC AMC is India's 9th largest asset manager by AUM, with a seasoned investment team and deep, on-the-ground presence in over 50+ cities and investors in 750+ cities and towns across the country.

Bandhan Financial Holdings Limited ("BFHL")
BFHL is wholly owned by Bandhan Financial Services Limited (BFSL), a Non-Banking Finance Company - Core Investment Company ("NBFC CIC"). Incorporated in 2014, BFHL is the promoter and an associate company of Bandhan Bank Limited ("Bandhan Bank") and is registered with the Reserve Bank of India ("RBI") under the 2013 Licensing Guidelines, as an NBFC categorized, as a Non-Operative Financial Holding Company ("NOFHC"). Presently, BFHL holds ~40% stake in Bandhan Bank.

GIC
GIC is a leading global investment firm established in 1981. Asthe manager of Singapore'sforeign reserves, GIC takes a long-term, disciplined approach to investing, and is uniquely positioned across a wide range of asset classes and active strategies globally. These include listed equities, fixed income, real estate, private equity, venture capital, and infrastructure. The firm'slong-term approach, multi-asset capabilities, and global connectivity enables it to be an investor of choice. Headquartered in Singapore, it has a global talent force of over 1,800 people in 10 key financial cities and has investments in over 40 countries.

For more information, please visit gic.com.sg or follow us on LinkedIn.

ChrysCapital ("CC Group")
Established in 1999, the CC group manages around US$5 billion across nine funds and is one of the leading investment firms based out of India. With ~100 investmentssince 1999, the CC group has valuable experience in investing across a breadth of sectors. The firm has been one of the most active private equity investors in the financial services sector in India with over 15 investments including Axis Bank, AU Bank, Bajaj Finance, Hero Fincorp, Mahindra & Mahindra Financial Services, Shriram Transport and National Stock Exchange of India.