Religare Enterprises Limited (REL) has agreed to acquire Lotus India Asset Management Company from the majority shareholders, Alexandra Fund Management, an affiliate of Singapore-based Fullerton Fund Management Company Ltd and India-based Sabre Capital. Religare however did not provide financial details of the deal.
Lotus India Mutual Fund’s assets under management are worth Rs 5,457 crore (as on end of October). The asset base for the mutual fund fell by more than 30 per cent in the October quarter. Religare Enterprises, owned by the former promoters of drug major Ranbaxy, and Netherlands-based AEGON Group, have a mutual fund joint venture, Religare AEGON Mutual Fund, which is yet to launch its first scheme.
The reason for the acquisition is not clear, especially with the kind of times the industry is in. Also, with Lotus having a majority of its schemes in the liquid and FMP categories, matters could be a little uncertain as these schemes have been facing high redemptions due to the liquidity crunch.