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IDFC shares rally after CCI approves divestment of IDFC AMC

In April this year, IDFC and a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital (CC) entered into a definitive agreement to acquire the company's AMC subsidiaries.  (Mint)

On BSE, IDFC shares settled at 60.35 apiece up by 2.55 or 4.41%. The shares have hit an intraday high of 61.05 apiece - resulting in about a 5.62% rise in the day.

The company's market cap is around 9,634.85 crore.

In its regulatory filing, on the divestment of the AMC arms, IDFC said, "we would like to inform you that the Competition Commission of India... 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."

In the two trading sessions this week, IDFC shares have advanced by nearly 12% taking into consideration the day's high. If compared with the closing price on Tuesday, IDFC shares have jumped over 10.5% from July 29 when the shares were around 54.6 apiece on BSE.

In April this year, IDFC and a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital (CC) entered into a definitive agreement to acquire IDFC Asset Management Company (IDFC AMC) and IDFC AMC Trustee Company Limited from the company for a consideration of 4,500 crore.

The Bandhan consortium was selected through a highly competitive divestment process which witnessed strong participation from strategic players and financial investors. This will be the largest deal in the Indian asset management industry to date.

The agreement envisages continuity of the current management team and investment processes at IDFC AMC, helping unitholders benefit from consistency in the high‐quality investment approach IDFC AMC is reputed for, IDFC said in a statement on April 6.

Founded in 2000, IDFC AMC manages over 1,15,000 crore of Asset Under Management (AUM) as of March 31, 2022, for over 1 million investor folios representing leading institutions, corporates, family offices, and individual clients. IDFC AMC is the country's ninth-largest asset manager by AUM, with a seasoned investment team and deep, on‐the‐ground presence in over 50 cities and investors in more than 750 cities and towns across the country.

IDFC AMC also operates a portfolio management business and acts as an investment manager for IDFC India Equity Hedge Fund, a Category III Alternative Investment Fund. IDFC Trustee has been appointed as the trustee company of IDMF.

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