The latest report suggests that the Delhi-based firm may buy the asset management firm
independently.New Delhi : -->
Financial services conglomerate Religare Enterprises has emerged as frontrunner to acquire American International Group’s (AIG) investment unit. Earlier reports indicated that Religare will partner will Australian banking giant Macquarie to buyout AIG Investments.
The latest report suggests that the Delhi-based firm may buy the asset management firm independently according to Financial News. Religare is being advised by Jefferies on the bid.
A spokesperson from Religare declined to comment on this development when contacted by VCCircle.
Franklin Templeton Investments, one of the largest asset managers in the world, was also in the race but pulled out last month. Singapore state investor Temasek Holdings Pte Ltd, Hong Kong tycoon Richard Li's Pacific Century Group, and New York-based private equity firm Crestview Partners LP, were also part of the Franklin consortium.
While Temasek and Pacific Century pulled out with Franklin, Crestview is still reported to be in the race. Last week the PE firm was reported to be close to the deal at a price of $300-400 million.
AIG Investments, which manages funds in excess of $85 billion, is expecting a valuation of $500 million. The latest report says that Religare is willing to spend $500 million to build an international
asset management business. AIG is selling its assets in order to repay the $182.5 billion bailout by the US government.
Last year, Religare acquired London-based broker Hichens Harrison & Co Plc for £56 million. The firm appointed Matthew H Mongia as a Director, Global Asset Management, of Religare Hichens Harrison earlier this year to develop its asset management vertical via new
product launches and strategic acquisitions globally. Mongia has worked with Monsoon Capital and Fidelity Investments.
Religare Enterprises Ltd is the financial services company owned by Malvinder and Shivinder Singh, the promoters of Ranbaxy Pharmaceuticals. The Singhs signed a deal with Japanese pharma company Daiichi Sankyo in June 2008 to sell their 34.8% stake in the company
for Rs 9,576 crore.
Since then, the Singhs have been expanding their financial services and healthcare business.
source
vccircle.com
One can consider investing in the Religare PSU Equity Fund
Religare Mutual Fund has come out with a New Fund Offer named Religare PSU Equity fund.
Religare AMC post its acquisition of Lotus AMC in Dec 2009, has seen its AUM grow 4 fold to Rs. 14,700 crores, over a 10 month period.
Fund Facts :
The fund seeks to invest in Companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors.
Fund Manager Mr. Pradeep Kumar
Benchmark BSE PSU Index
The fund will invest 65 per cent of its assets in companies in the BSE PSU index and the remaining 35 per cent in other PSU companies. The fund will also participate in forthcoming IPOs of Government companies. In addition, the Fund mandate has been carefully thought through and provides the flexibility to hold up to 20% of the companies even after the Government exits or becomes a minority shareholder, past examples being Hindustan Zinc and Maruti.
The fund will adopt a bottom up & top down approach to create a diversified portfolio of stocks. The fund will have no capitalization bias and will be style neutral.
Religare PSU Equity New Fund Offer opened on Tuesday September 29th 2009 and will close on October 28 2009.
WHY INVEST :
Valuation wise PSU Companies are available at a discount of approx 25% to Sensex, giving adequate comfort in terms of safety.
Govt's disinvestment programme will be a good booster for PSU companies. The disinvestment will also improve the free float which will in turn improve their weightage in Nifty, forcing Funds across the World with India exposure to increase exposure to PSUs and giving their Stocks a boost.
Lesser Govt intervention is helping manage the PSUs more professionally thus attacting more FII interest.
All these measure are expected to re-rate PSUs on par with Private Companies in terms of PE, if not more thus giving Above Average Gains.
COMMENTS & RECOMMENDATION :
As you would have already guessed, my recommendation is INVEST. Most PSUs are BIG companies and are Leaders in their industries, in fact, many are virtual Monopolies. Thus this Fund will be like a Large Cap Fund. This Fund will is recommended for Long Term Investors.
In the Last Year's Big Bear Crash, PSUs were the Least Affected thus giving a sort of comfort to investors. This Fund being a Proxy to PSUs and a proxy to the India Growth Story and thus, should make it to every Investor's Portfolio.
Religare Mutual Fund has come out with a New Fund Offer named Religare PSU Equity fund.
Religare AMC post its acquisition of Lotus AMC in Dec 2009, has seen its AUM grow 4 fold to Rs. 14,700 crores, over a 10 month period.
Fund Facts :
The fund seeks to invest in Companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors.
Fund Manager Mr. Pradeep Kumar
Benchmark BSE PSU Index
The fund will invest 65 per cent of its assets in companies in the BSE PSU index and the remaining 35 per cent in other PSU companies. The fund will also participate in forthcoming IPOs of Government companies. In addition, the Fund mandate has been carefully thought through and provides the flexibility to hold up to 20% of the companies even after the Government exits or becomes a minority shareholder, past examples being Hindustan Zinc and Maruti.
The fund will adopt a bottom up & top down approach to create a diversified portfolio of stocks. The fund will have no capitalization bias and will be style neutral.
Religare PSU Equity New Fund Offer opened on Tuesday September 29th 2009 and will close on October 28 2009.
WHY INVEST :
Valuation wise PSU Companies are available at a discount of approx 25% to Sensex, giving adequate comfort in terms of safety.
Govt's disinvestment programme will be a good booster for PSU companies. The disinvestment will also improve the free float which will in turn improve their weightage in Nifty, forcing Funds across the World with India exposure to increase exposure to PSUs and giving their Stocks a boost.
Lesser Govt intervention is helping manage the PSUs more professionally thus attacting more FII interest.
All these measure are expected to re-rate PSUs on par with Private Companies in terms of PE, if not more thus giving Above Average Gains.
COMMENTS & RECOMMENDATION :
As you would have already guessed, my recommendation is INVEST. Most PSUs are BIG companies and are Leaders in their industries, in fact, many are virtual Monopolies. Thus this Fund will be like a Large Cap Fund. This Fund will is recommended for Long Term Investors.
In the Last Year's Big Bear Crash, PSUs were the Least Affected thus giving a sort of comfort to investors. This Fund being a Proxy to PSUs and a proxy to the India Growth Story and thus, should make it to every Investor's Portfolio.
BSE PSU Index has delivered 20% CAGR in the last 10 years and has outperformed the Sensex by 8%.
SPECIAL TIP :
Invest in small lump-sums instead of SIPs if you can track the sector and are prepared to book profits occasionally.
Best of luck,
Santosh Rathod
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