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Bandhan Financial Holdings gets RBI's nod to invest in IDFC AMC, IDFC TCL

Bandhan Financial Holdings gets RBI's nod to invest in IDFC AMC, IDFC TCL

Bandhan Financial Holdings gets RBI's nod to invest in IDFC AMC, IDFC TCL
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By CNBCTV18.com Oct 21, 2022 1:46:37 PM IST (Updated)

In April 2022, IDFC approved BFHL's acquisition of shareholding of 60 percent in IDFC AMC and 60 percent in IDFC TCL by investing up to Rs 2,700 crore and Rs 30 lakh respectively, subject to receiving required approvals from other sectoral regulators.

Bandhan Financial Holdings (BFHL) has got Reserve Bank of India's (RBI's) approval to invest in IDFC Asset Management Company Limited (IDFC AMC) and IDFC Trustee Company Limited (IDFC TCL).

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"We have been informed by the BFHL that the RBI has, vide its letter dated October 20, 2022, conveyed its 'No Objection' to BFHL to invest in IDFC AMC and IDFC TCL," IDFC said in a regulatory filing on Friday.
"The proposed divestment remains subject to receipt of approval from Sebi," IDFC said.
In April 2022, IDFC approved BFHL's acquisition of shareholding of 60 percent in IDFC AMC and 60 percent in IDFC TCL by investing up to Rs 2,700 crore and Rs 30 lakh respectively, subject to receiving required approvals from other sectoral regulators.
Now, the same has got RBI's approval.
Once this is done, BFHL may acquire additional stake of up to 10 percent each in IDFC AMC and IDFC TCL amounting to Rs 450 crore and Rs 5 lakh respectively, in case one or more of the consortium partners are unable to purchase the shares under sale.
BFHL shall ensure compliance with the following conditions (according to IDFC):
  • Bandhan Bank Limited shall not invest in the equity/debt capital instruments of IDFC AMC and IDFC TCL (investee companies). Further, there shall not be any outflow of funds from the bank for the proposed acquisition directly or indirectly in form of credit exposure to the BFHL.
  • BFHL shall submit the details of its shareholding in the investee companies after the proposed acquisition
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