L&T Mutual fund business is up for sale on the market now.
L&T has officially announced to sell its business of mutual funds. This engineering-based company that also handled software business in the year 2016, made a decision to auction small portion of its mutual fund arm but seeing the market situations, it has now planned to sell the entire mutual fund arm.
According to the latest reports compiled in the month of March this year, the overall AUM of the company was Rs.39,300 crore and out of this Mutual fund AUM counted to approx. Rs.18.3 lakh crore.
Now L&T is looking to sell this Mutual fund arm for Rs.2,000 Crore. This is almost 5% of the total AUM of the company. The company took help from the US banks and asked them to look for any potential buyer for their mutual fund business. Soon, a banker would be appointed who will look after the transactions of the deal and much more.
In the year 2016, L&T was confirmed to sell either 26% or 49% of the mutual funds but failed to find buyers because no one was really interested in buying only a portion of the mutual fund. This led L&T to plan to sell its entire stake in its mutual fund arm.
Now L&T is planning to sell the entire mutual fund arm rather than selling a major stake in this valuable arm of L&T.
Many changes have been introduced in L&T mutual funds since the day, L&T planned the deal to sell a minority stake of its mutual fund’s arm in the year 2016.
The AUM of L&T mutual fund arm rose from Rs.25,000 crore to approx. 60% this value in the running year.
As per the reports collected by the officials, L&T has paid a huge sum of money to increase its assets. The company has also reduced the number of working employee who were earlier working for the mutual fund department of the L&T.
Now the investors have asked L&T to finalize the deal somewhere between Rs.1200 to Rs.1500 crore. L&T has really struggled a lot to reach to this position. Hopefully, L&T would finalize the deal soon.
Love playing sports? Download this app "Win cash rewards while playing sports that you love".