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Sundaram AMC Acquires Core Business of Principal for Undisclosed Amount

Sundaram Asset Management Company (Sundaram), a wholly-owned subsidiary of Sundaram Finance Ltd, announced the purchase of the core business of Principal Asset Management Pvt Ltd. The value of the transaction is approximately Rs 338.53 crore.

Sundaram will acquire the plans managed by Principal Asset Management Pvt Ltd and acquire 100 percent of its share capital, as well as that of Principal Trustee Company Pvt Limited and Principal Retirement Advisors Pvt Ltd.

The transaction is subject to receipt of the necessary regulatory approvals and prescribed processes by Sebi, and Principal will continue to operate the business until the transaction is completed.

Sundaram is a leading player in the field of fund management with a history of 25 years. It has over Rs 40,000 crore in assets under management, the majority of which are in equity-based programs.

Principal Asset Management had assets under management of Rs 7,447 crore as of December 31, 2020, of which approximately 90% was in equity-based programs.

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Sunil Subramaniam, Managing Director of Sundaram Asset Management, said the transaction will strengthen the company’s market presence with the addition of a range of programs with a good track record of long-term performance in the large and medium segments. capitalizations. This will complement its activity traditionally oriented towards the mid and small cap segment.

Pedro Borda, COO, Principal International said: “As part of a systematic review of the business portfolio of the company and the dynamics of the global market, we have made the decision to withdraw from the management activity. assets in India. distributors will remain our top priority ‘We believe they will benefit from Sundaram Asset Management’s largest mutual fund platform in this market. “

TT Srinivasaraghavan, Managing Director of Sundaram Finance, said the acquisition is a natural step in the group’s aspiration to become a major player in the asset management industry. “We will be able to leverage the combined platform to achieve significant synergies. The goal for us will be to provide a better experience for our investors and distribution partners,” he added.

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