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With this approval, all necessary actions are being taken to ensure completion of the proposed transaction, the company said.
L&T Investment Management (L&T AMC) is a wholly owned subsidiary of L&T Finance Holdings, and the asset manager of L&T Mutual Fund.
In December 2021, HSBC Holdings Plc's Indian asset management unit had announced buying out the mutual fund unit of L&T Finance Holdings for $425 million (about Rs 3497 crore) to bolster its wealth management business. The proposed deal secured the approval of the Competition Commission of India (CCI) in March 2022.
The divestment of Mutual Fund business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet.
HSBC AMC intends to merge the operations of L&T AMC with that of its existing asset management business in India.
L&T Finance Holdings is a non-banking financial company (NBFC) that offers a range of financial products and services through its wholly owned subsidiaries.
On a consolidated basis, the NBFC reported 47% YoY jump in net profit to Rs 262 crore in Q1 FY23. Total income in the first quarter increased marginally to Rs 3,136 crore from Rs 3,116 crore reported in the same period last year.
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