Hinduja Group's IIHL-Invesco Deal - The Large Have Largely Remained Large In Indian AMCs: ICICI Securities

ICICI Securities Report

Hinduja Group-owned IndusInd International Holdings’ foray in Indian asset management space via the acquisition of Invesco Asset Management India marks yet another deal in the Indian asset management space and yet another exit of a foreign player.

At an industry level, large players have maintained their share (near 70% of Asset Under Management) while consolidation has mostly happened for medium-small players. This is despite the total expense ratio structure benefitting smaller sized players. We highlight the list of transaction details in the asset management eompanies space, foreign exits and details of Invesco India AMC in this report.

Based on upper band of reported Rs 25 billion valuation of Invesco India, the valuation would be 3.3% of current AUM and ~56 times of FY23 profit after tax.

Comparatively, HDFC AMC Ltd., Nippon Life India Assets Management Ltd., UTI Assets Management Company Ltd. and Aditya Birla Sun Life AMC Ltd. are trading at 56 times, 48 times, 26 times and 24 times of FY23 PAT, respectively.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.