BlackRock, Reliance Nippon among top bidders for IDFC AMC

Global asset manager BlackRock Inc. and Reliance Nippon Life Asset Management Ltd have emerged as the top bidders for IDFC Asset Management Co. Ltd in the first round, a financial daily reported.

A report from financial daily said that the potential buyers are likely to offer Rs 2,000-2,500 crore, while the company’s promoter, IDFC Financial, is seeking a valuation of Rs 4,000 crore.

The lower valuation offered by the bidders could be due to the company’s declining profits and its failure to retain top executives, the report added.

BlackRock had Monday confirmed to sell a 40% stake in joint venture DSP BlackRock Investment Managers Pvt. Ltd to partner DSP Group. DSP BlackRock Investment Managers is the asset management company behind DSP BlackRock Mutual Fund.

In March 2017, IDFC Financial Holding Company Ltd, a subsidiary of IDFC Ltd, had agreed to buy back a 25% stake in IDFC AMC from Paris-based Natixis Global Asset Management for Rs 244.24 crore.

Established in 2000, IDFC AMC is among the top 15 mutual fund firms in India.