IDBI Deals With Edelweiss
IDBI MF ARM: IDBI Limited is known as the Industrial development bank of India. Initially, it was operated as a subsidiary of RBI. It offers a wide range of products to all types of customers such as retail loans, agricultural loans, savings accounts, etc. IDBI wants to sell its mutual fund arm to Edelweiss MF. IDBI and Edelweiss are in the final stage of discussions. Edelweiss is the frontrunner to purchase the IDBI Mutual Fund.
According to the report, IDBI bank held up to 66.67 percent of stake in IDBI AMC and 33.33 percent was held by IDBI capital markets and securities, on March 31, 2019.
Edelweiss AMC is in the first position to buy mutual fund arm. But, two other mutual funds want to buy IDBI MF arm as well.
IDBI MF’s asset under management had reduced due to a decrease in equity and liquid AUM. As on September 30, the total asset under management of IDBI Mutual funds reduced to Rs 5,381 crore from Rs 6,238 crore, as on March 31, 2019.
As of the AMFI reports, the asset under management of IDBI stood at Rs 7,241 crore in the last fiscal. Moreover, the IDBI mutual fund valued between Rs 400 crore to Rs 450 crore.