In Nov 2019, Muthoot Finance was to acquire 100% equity shares of IDBI Asset Management Limited held by IDBI Bank Limited and its nominees and IDBI Capital Markets & Securities Limited, and 100 % equity shares of IDBI MF Trustee Company Limited held by IDBI Bank Limited and its nominees. It was awaiting the regulatory nod.
This was to be purchased for a total consideration of Rs.215 crore.
Yesterday, RBI rejected this proposal, saying, “the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in consonance with the activity of an operating NBFC.”
The market seems pretty relieved with this news as the stock opened in the green at Rs.1146 and rose 1% to Rs.1149.20. Trading volume is muted as of now.