NEW DELHI: Sundaram Asset Management Company, a wholly-owned subsidiary of Sundaram Finance, has acquired the business of Principal Asset Management in India for Rs 338.53 crore. As part of the deal, Sundaram AMC will buy out the entire share capital of Principal Asset Management, Principal Trustee Company and Principal Retirement Advisors.
The fund houses said that they will work to ensure that there will be no disruption of service to their partners and investors in the interim, and a seamless transfer once approval is obtained. The transaction is subject to regulatory approvals and Sebi-prescribed processes.
Sunil Subramaniam, Managing Director, Sundaram AMC, said the deal will strengthen Sundaram MF presence in the market place with the addition of a range of schemes with a good long term performance track record across the large and mid-cap segments. “This will complement our business which has traditionally been weighted towards the mid- and small-cap segment,” he said.
Sundaram is a significant player in the fund management space and has over Rs 40,000 crore in assets under management (AUM), the majority of which is in equity oriented schemes. Principal Asset Management, meanwhile, has AUM of Rs 7,447 crore as of December 2020.