Muthoot Finance Limited (NSEI:MUTHOOTFIN) agreed to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited from IDBI Bank Limited (BSE:500116) and IDBI Capital Markets & Securities Ltd. for INR 2.2 billion on November 18, 2019. On November 22, 2019, Muthoot Finance Limited signed a share purchase agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited from IDBI Bank Limited and IDBI Capital Markets & Securities Ltd. Under the terms, IDBI Bank Limited agreed to sell 66.67% stake in IDBI Asset Management Limited and 100% stake in IDBI MF Trustee Company Limited and IDBI Capital Markets & Securities Ltd. agreed to sell 33.33% stake in IDBI Asset Management. Upon closing, both IDBI AMC and IDBI MF Trustee Company will become wholly owned subsidiary companies of Muthoot Finance. For the year ended March 31, 2019, IDBI Asset Management Limited reported turnover of approximately INR 460 million and net worth of INR 931.2 million while IDBI MF Trustee Company Limited reported turnover of INR 8.2 million and net worth of INR 10 million. The transaction is subject to necessary regulatory approvals from Securities and Exchange Board of India, Competition Commission of India and other relevant regulators. Proposed transaction has been approved by the Board of Directors of Muthoot Finance, Sellers and the Target Companies. As of December 20, 2019, the transaction has been approved by The Competition Commission of India. The transaction is expected to close by February 20, 2020.

Hemangini Dadwal of AZB & Partners acted as legal advisor to Muthoot Finance Limited. ICICI Securities Limited acted as financial advisor and J Sagar Associates acted as legal advisor to the Sellers.