L&T Finance may sell stake in MF business
Four years after acquiring Fidelity Mutual Fund in March 2012, L&T Finance Holdings is considering selling stake to a foreign partner. The non-banking finance company of engineering behemoth Larsen & Toubro (L&T), which operates the country’s 14th biggest asset management company (AMC), with asset size of nearly Rs 26,000 crore, is also not averse to exiting the business altogether.”For the MF business, we may look at a minority foreign partner, who can bring in funds into the business and add value to our growth strategy,” said a spokesperson of L&T Finance.Questioned specifically on exiting the MF space, the spokesperson said, “We would not like to comment on rumours or speculation.”According to sources familiar with the developments, L&T Finance has begun the evaluation process and is eyeing valuations between Rs 1,000 crore and Rs 1,300 crore. This would value the fund house at four to five per cent of its asset size, in line with some of the recent acquisitions in domestic AMC space.
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