“The bank will acquire this stake from the existing shareholder Nomura Asset Management Strategic Investments PTE Ltd of LIC Nomura Mutual Fund Asset Management Company Ltd. at a price of Rs. 5,66,91,800/- as per the valuation derived, subject to necessary approval and agreement, if any,” the bank said in BSE filing.
Nomura Asset Management has been gradually reducing its stake in the mutual fund entity over the past few months, as it looks to pull out of the Indian mutual fund market.
Last month, GIC Housing Finance disclosed that it will acquire will acquire as much as 16% in LIC Nomura Mutual Fund Asset Management Co. Ltd for Rs.22.68 crore and up to 16% stake in LIC Nomura Mutual Fund Trustee Co. Pvt Ltd for Rs.1.26 lakh. The same month, LIC Housing Finance decided to acquire up to 19.3% stake in LIC Nomura Mutual Fund for Rs.27 crore.
Several foreign firms have pulled back from this sector in the last few years. In August this year, Deutsche Bank Group sold its Rs 20000-crore asset management business in India to Pramerica Asset Managers. Last year, Morgan Stanley and PineBridge had too exited India’s mutual fund sector.