LIC MF had an AUM of Rs 18,400 crore and IDBI MF had Rs 3,650 crore as of June. After completion of the merger, out of 20 schemes of IDBI MF, 10 schemes will be merged with similar schemes of LIC MF and the remaining 10 will be taken over by LIC MF on standalone basis, which will take its total scheme count to 38.
With this merger, investors invested in IDBI MF schemes will get access to LIC MF’s diversified basket of product offerings covering equity, debt, hybrid, solution oriented themes, ETF and Index funds.
“It is an important milestone in our journey as we are working towards developing our capabilities to serve as a diversified mutual fund house catering to investment needs across key markets in India,” said TS Ramakrishnan, MD and CEO, LIC MF.
The competition commission of India (CCI) had in March this year approved this takeover by LIC MF. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace.
IDBI Bank is the sponsor of IDBI MF and IDBI AMC acts as the asset management company to IDBI MF while IDBI Trustee Company acts as the trustee company of IDBI MF.
Post transaction, the schemes of IDBI MF will form part of LIC MF with LIC AMC acting as the asset management company for the schemes of IDBI MF. LIC TC will act as the trustee company of the schemes of IDBI MF.”The merger complements our goal to strengthen our scheme offerings in the mid-cap, small-cap, gold fund, passive fund segments, etc. It will help us build a wider market presence and offer a more extensive range of product baskets. The combined strength will help us capture emerging opportunities in the thriving asset management industry and drive value for investors and distribution partners,” Ramakrishnan said.
“Our vision is to be a trusted partner in wealth creation and a mutual fund of choice. The track record of managing funds for over three decades has enabled us to gain trust of investors. We will remain focused and work towards delivering long-term performance by adopting adequate risk control mechanisms,” he added