Bandhan Financial Holdings Ltd. has received approval from the Reserve Bank of India to invest in IDFC Asset Management Co. and IDFC AMC Trustee Co.
The consortium -- led by parent firm of Bandhan Bank Ltd., and including Tangerine Investments, Singapore's sovereign wealth fund GIC Pte Ltd and ChrysCapital -- had won the bid to own IDFC AMC in April.
The RBI, in an Oct. 20 letter, approved Bandhan's acquisition of 60% stake in IDFC AMC and IDFC TCL for Rs 2,700 crore and Rs 30 lakh, respectively, according to a exchange filing by IDFC Ltd. on Friday.
Bandhan may acquire an additional 10% stake in IDFC AMC and the trustee company by paying an additional Rs 450 crore and Rs 5 lakh, respectively, the filing stated.
"Any additional capital infusion in the two investee companies or change in the nature of their business can only be made with the prior approval of the Reserve Bank," the central bank's approval letter stated.
The proposed divestment of IDFC's units remains subject to approval from the Securities and Exchange Board of India, the filing stated.
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