IndusInd Bank promoters acquire majority stake in Invesco's India arm

The promoters of IndusInd Bank are set to purchase a 60 per cent stake in the Indian division of global asset manager Invesco. The announcement, made on Tuesday, signals a strategic shift in ownership dynamics, although the specific financial details of the transaction remain undisclosed.

Following the completion of the deal, Invesco will retain a 40 per cent ownership stake in its Indian arm, known as Invesco Asset Management India (IAMI). Notably, IAMI stands as the fifth largest foreign asset manager in India, boasting assets under management valued at Rs 85,393 crore as of March 31.

The collaboration between IndusInd Bank's promoters and Invesco comes at a time what has been described as an opportune moment, driven by India's rising prosperity, growing investor confidence, and favourable demographic trends. Moses Harding, CEO of IndusInd International Holdings Ltd (IIHL), a Mauritius-based promoter entity under the Hinduja Group umbrella, expressed optimism about the partnership's potential within this evolving landscape.

Saurabh Nanavati, CEO of Invesco Asset Management India (IAMI), highlighted the strategic significance of having a robust domestic partner. Nanavati stressed that such a partnership will enhance their ability to expand operations across various Indian cities and towns, tapping into the burgeoning demand and growth potential within the industry.

The move comes amid growing expectations for Indian wealth managers, as brokerage firm Jefferies anticipates significant benefits from the country's economic growth and the increasing trend of savings being channelled into capital markets, particularly fuelled by heightened retail interest observed in recent years.

(With Reuters inputs)