LIC Mutual Fund has acquired all schemes of IDBI Mutual Fund in a new deal that is set to shake up the Indian investment market. The takeover will see LICMF manage, operate, and administer all of IDBIMF’s schemes, with 10 out of IDBI’s 20 individual schemes being merged with LICMF schemes. The current Asset Under Management (AUM) of LICMF stands at Rs 19,700 crore, while IDBI manages assets worth Rs 3,800 crore.
The acquisition is set to be finalized by the end of July, after which all the schemes of IDBI Mutual Funds will be administered by LICMF. TS Ramakrishnan, Managing Director and CEO of LIC Mutual Fund, stated that the unitholders of IDBI MF will be informed and given the option to exit the schemes, without being charged an exit load. Schemes of the fund houses having similar features will be merged, but the acquisition is for schemes and not the acquisition of entity, clarified Ramakrishnan.
IDBI Mutual Fund has sent an email to its unitholders to explain the details of the deal and included a ballot form for unitholders’ approval on the merger. The voting window will be open from June 20, 2023, until July 19, 2023, during which each unitholder will be entitled to one vote for every unit held. As the asset management for IDBI MF schemes, LIC Asset Management Company (AMC) will take the reins, while LIC TC will act as the trustee company. Life Insurance Corporation of India (LIC) is the sponsor of LIC Mutual Fund, as well as the parent entity of LIC AMC.
