Reliance CAM will pay Rs 243 crore or $ 37.5 million in cash to acquire all onshore mutual fund programs, including GSAM India’s exchange traded funds, Reliance Capital said in a press briefing.
The boards of the two companies – Reliance Capital Asset Management and Goldman Sachs Asset Management India – have already approved the transaction, which is expected to be finalized by the end of this fiscal year subject to the necessary regulatory approvals.
at 10:50 a.m. Reliance Capital shares were trading 3 percent higher at Rs 411 on BSE. GSAM India currently manages 12 mutual funds, including 10 ETFs, and is the largest ETF provider in India.
“We are happy to have reached an agreement on the transfer of our onshore funds to RCAM. GSAM will continue to provide global asset management services to Indian clients and will remain a significant investor in Indian securities through GSAM funds managed regionally and globally, â€said Sonjoy Chatterjee, President of Goldman Sachs India.
“In the meantime, we remain committed to growing our investment banking and securities franchise in India and we continue to be extremely positive about India as an important and growing market for Goldman Sachs in its whole, â€he added.
GSAM had a total AUM of Rs 7,132 crore ($ 1.1 billion) as of September 30, 2015, which includes Rs 2,172 crore ($ 334 million) of AUM in the ETF of central public sector companies (CPSE), for which GSAM India is currently the exclusive managing fund.
“The acquisition by RCAM is an important first step in our overall strategy to strengthen our business through selective inorganic growth. GSAM India has a strong mix of programs and a talented team, â€said Sam Ghosh, Executive Director of Reliance Capital.
“We are convinced that together, they will complete and improve the overall offer of RCAM to our investors,” he added.
