CCI approves divestment of IDFC AMC, says IDFC; shares rise

IDFC Ltd on Tuesday said that the Competition Commission of India (CCI) has approved the divestment of IDFC Asset Management Company (IDFC AMC). Following the news, shares of IDFC Ltd rose over 4 per cent to trade at Rs 60.25 apiece on BSE during late trading hours.

"...The Competition Commission of India has, vide its letter dated August 01, 2022, informed that the Commission, at its meeting held on August 01, 2022, considered the proposed combination and approved the same under sub-section (1) of Section 31 of the Competition Act, 2022. Copy of the approval letter is enclosed as Annexure-1. The Proposed divestment remains subject to receipt of approvals from Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI)," the company said in a regulatory filing.

Earlier in April, IDFC Board had approved a consortium of Bandhan Financial Holdings, GIC and ChrysCapital to acquire IDFC Asset Management Company for Rs 4,500 crore in one of the largest deals in the country's asset management space.

IDFC Ltd and the consortium have entered into a definitive agreement to acquire IDFC Asset Management Company Limited (IDFC AMC) and IDFC AMC Trustee Company Limited.

The agreement envisages continuity of the current management team and investment processes at IDFC AMC.

This will be supplemented 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.