Capital market regulator Securities and Exchange Board of India (SEBI) has granted approval to Hinduja Group firm IndusInd International Holdings for the acquisition of Invesco AMC’s portfolio management services business.

According to sources, SEBI’s approval marks the completion of a crucial phase in IndusInd International Holdings Limited’s (IIHL) 60% acquisition of Invesco AMC, leaving only one final regulatory hurdle before the transaction can be completed.

An application seeking the SEBI green signal for grant of sponsor approval to IIHL is under process. IIHL will complete the transaction after receiving that approval, sources said.

The Competition Commission of India (CCI) has already granted its consent to IIHL for acquiring 60% shareholding each in InvescoAsset Management (India) Pvt Ltd and Invesco Trustee Pvt Ltd.

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IIHL will be holding the investment through its wholly-owned subsidiary.

Earlier, the company had bid and acquired Reliance Capital Ltd and its subsidiaries that operate in the life insurance, health and general insurance sectors as well as asset reconstruction, research and securities broking. IIHL’s resolution plan was approved by the National Company Law Tribunal.

With IIHL as a strong domestic partner, Invesco will now be able to expand into more Indian cities and towns.

Invesco Asset Management began its India operations in 2008 with the acquisition of Lotus India Asset Management Company. Since then, it has grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors as of April, with over 70% of its assets under management (AUM) in the equity and equity-oriented assets.

It is the fifth largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and AUM of ₹85,393 crore as of March 31, 2024, and a presence in 40 cities across the country.