The closure of the transaction happens almost two years after Groww signed a definitive agreement in May 2021 to acquire the mutual fund business of IBHFL’s subsidiaries Indiabulls Asset Management Co (IAMCL) and Indiabulls Trustee Co (the trustee of IAMCL). The alternate investment fund, which too was housed under IAMCL, has been demerged and retained by Indiabulls Housing Finance. The transaction had received approval from Competition Commission of India in September 2021. The closing date of the deal was May 3, the filing said.
The deal also included a cash equivalent of Rs 100.62 crore, to be invested by Groww in the MF business. With this acquisition, Tiger Global and Sequoia-backed Groww will be able to launch and manage its own mutual funds, giving it an early start against competitor Zerodha, which is still awaiting the final licence from market regulator.
On the money
- The sale of Indiabulls AMC is limited only to the mutual fund part of the business.
- The alternate investment fund has been retained by Indiabulls Housing Finance.
- Groww has raised $393 million till date.
- Company was last valued at $3 billion after raising $251m in October 2021.
