Competition Commission of India: CCI approves Groww’s acquisition of Indiabulls AMC


NEW DELHI: Tha Competition Commission of India (CCI) on Thursday approved the acquisition of Indiabulls Asset Management Company and Indiabulls Trustee Company by Nextbillion Technology, which operates the online investment platform Groww.

The digital platform had in May announced the acquisition of Indiabulls AMC for a total consideration of Rs 175 crore. The deal was for the asset management company and the trustee company, which included a cash and equivalent component of Rs 100 crore.

Groww is the first fintech to enter the asset management space after the capital markets regulator Sebi allowed digital platforms to enter the mutual fund business. It has over 1.5 crore customers who use the platform to invest in mutual funds, stocks and exchange-traded funds (ETFs) and wishes to increase the retail participation in equity.

Indiabulls Mutual Fund has 13 schemes, with the quarterly average assets under management at Rs 663.68 crore as of March 2021, down from Rs 921.33 crore in December 2020.

Indiabulls’ Alternate Investment Fund (AIF) and portfolio management service (PMS) businesses will be demerged from the existing Indiabulls Asset Management Company structure, and remain under Indiabulls Housing Finance.

PTI had in May reported that Indiabulls Housing Finance planned to grow its real estate asset management business through the AIF structure in line with its asset-light strategy. While Indiabulls Housing Finance will focus largely on retail disbursements, the AIF structure will be used for the wholesale opportunity of early-stage project finance.

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