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Tatas in talks with foreign strategic investors to sell stake in mutual funds arm

06 March, 2017

Tata Asset Management Ltd is looking to sell a stake in its mutual funds business to a foreign strategic partner to expand its presence in overseas markets, a media report said.

Hormuz A. Balsara, chief operating officer of Tata Asset Management, told Mint that the company is in talks with some of the world’s largest fund managers, including US-based Vanguard Group and Germany’s Allianz SE.

The report went on to add, citing unknown sources, that the company would like to sell 26-49% of its holding in the MF business, but the deal is yet to be formalised.

“Tata has global ambitions and, if a strong global player is willing to come here and sell its products through us, I think the synergy will be very strong. Tata will always retain a majority stake in the asset management company,” Balsara told the business daily.

Emails sent to Tata Asset Management, Vanguard and Allianz did not elicit any immediate response. 

Tata Sons owns 67.91% stake in Tata Asset Management, while Tata Investment Corporation holds the remaining 22.09%.

“We have also been interacting with Japanese and Belgian asset management firms and, if it makes sense, we will definitely look at a tie-up,” Balsara added.

The COO went on to add that the company’s philosophy has been to join hands with companies who bring very specific strategic advantages to the table.

According to the association of mutual funds in India, the average assets under management (AUM) of the Indian mutual fund industry as on 31 January, 2017, stood at ₹17.37 lakh crore, from Rs 3.26 lakh crore as on 31 March 2007.

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Tatas in talks with foreign strategic investors to sell stake in mutual funds arm

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