HSBC Asset Management (India) has entered into an agreement with L&T Finance Holdings (LTFH) to fully acquire L&T Investment Management Limited (LTIM) for $425 million.
LTIM is a wholly-owned subsidiary of LTFH and the investment manager of the L&T Mutual Fund. HSBC intends to merge the operations of LTIM with that of its existing asset management business in India, which had an AUM of Rs 117 billion ($1.6 billion) as of September 2021.
Noel Quinn, HSBC’s Group CEO, commented: “Combining LTIM with our existing Indian asset management business gives us the scale, reach, and capabilities to capture some of the 15-20% annual asset management market growth expected in India over the next five years. It also boosts our ability to serve India’s growing wealth needs, along with those of the 18 million non-resident Indians around the world.”
Surendra Rosha, HSBC’s Co-Chief Executive Asia Pacific, added: “LTIM’s customer base and wide footprint in India will provide HSBC with much deeper access to a high-growth wealth management market.”
Hitendra Dave, the CEO, HSBC India, said: “This acquisition underscores our commitment to double down on our focus to grow our materially large franchise in India.”
Dinanath Dubhashi, Managing Director & CEO, LTFH commented: “When seen alongside the recent capital raise it provides us with enough ammunition to increase the pace of realization in our lending portfolio, which is one of our long-term goals.”