M&A

M&A

HSBC in talks to acquire mutual fund biz of L&T Finance

Business Today  

L&T Finance Holdings is in talks with financial services giant HSBC about the possible sale of L&T's mutual fund arm. L&T Finance wants to sell its mutual fund business to monetise non-core businesses. L&T's mutual fund arm is a subsidiary of L&T Finance Holdings Ltd. The company has over INR 75,531 crore quarterly- average assets under management as of June 30, 2021. Its MF basket comprises 35 funds, including 12 open-ended equity schemes, 12 open-ended debt/fixed income schemes, five hybrid schemes and six close-ended schemes. Last year, private equity major Blackstone was in talks with L&T Finance to buy its mutual fund business for an INR 3,200 crore deal. However, it did not materialise as market regulator Securities and Exchange Board of India rejected the deal. Sebi does not favour private equity firms owning a majority stake in mutual funds due to their short-term nature.