IDFC shares tank over 7% as Bandhan consortium to acquire AMC business for Rs 4,500 crore
Shares of IDFC tanked more than 7 per cent in early trade on Thursday, a day after the company announced the divestment of its asset management business to a consortium of Bandhan Financial Holdings, GIC and ChrysCapital for Rs 4,500 crore.
The stock tumbled 7.16 per cent to Rs 63.50 on the BSE.
At the NSE, it tanked 7.23 per cent to Rs 63.50.
A consortium of Bandhan Financial Holdings, GIC and ChrysCapital will acquire IDFC Asset Management Company for Rs 4,500 crore in one of the largest deals in the country’s asset management space.
The deal is subject to receipt of necessary regulatory approvals and customary closing conditions, according to a regulatory filing on Wednesday.
The agreement envisages continuity of the current management team and investment processes at IDFC AMC.
This will be supplemented by Bandhan’s brand as well as GIC’s and CC’s international network and experience which will aid IDFC AMC in further cementing its position in the asset management industry and propel further growth, the filing said.