L&T Finance sells mutual fund business to HSBC AMC

L&T Finance sells mutual fund business to HSBC AMC

Shares of L&T Finance Holdings lost 4% in early trade on Friday as foreign lender HSBC’s asset management arm will be acquiring L&T Mutual Fund from L&T Finance Holding for $425 million (about Rs 3,192 crore) in a bid to grow its franchise in the country.
L&T Finance Holdings’ share price dropped to a low of Rs 79.25 as against the previous close of Rs 82.60 on the National Stock Exchange.
L&T Finance Holdings decision to divestment of mutual fund business is in line with the strategic objective of of unlocking value from its subsidiaries to strengthen its balance sheet.

The acquisition of LTIM (L&T Investment Management Ltd) is in line with the strategic growth plans of HSBC in India.
The transaction is subject to the requisite regulatory approvals. Both LTIM and HSBC AMC will work to ensure that there will be continuity of services to their investors and counter-parties in the interim.
At present, LTIM is the 12th largest asset management company in India.

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