Reliance family knows how to invest and where to make it big and the recently announced acquisition seems to be making a whopping deal. In its first ever, Reliance capital asset Management (RCAM) announced takeover of giant Goldman Sachs India MF for a good Rs 243 crore and that too in an all cash deal. This acquisition seems to profit the Anil Ambani led Reliance MF to the moons as supposed.
The big deal which assure all 12 onshore schemes of Goldman Sachs Asset management India by RCAM with a total asset management under Rs 7132 crore would most likely make Reliance MF the exclusive fund manager for the government’s ambitious Central Public Sector Enterprises (CPSE) Exchange Traded Fund.
Reliance Capital is the one of the financial services firm of Reliance Group which is led by Anil Ambani. It also deals in other sectors like brokerage, insurance, and wealth management among other areas.
In a statement, it has also been said that the transaction has been approved by the boards and heads of the two companies and further processings are under guidance which will be completed in the current fiscal year.
After the company portrayed its acquisition with Goldman Sachs asset management (GSAM ). The shares of the company soared over 4 percent.
In a BSE filing, the company said, “Reliance Capital Asset Management will pay a total sum of Rs 243 crore (US$ 37.5 million) in cash to acquire all onshore mutual fund schemes, including exchange traded funds, of GSAM India.”
Sundeep Sikka, chief executive officer at RCAM, said the transaction will add over half a per cent in RCAM’s market share and the company would be willing to consider more such acquisitions to strengthen its portfolio.
As said by the Goldman Sachs India chairman “GSAM will continue to deliver global asset management services to Indian clients and will remain a significant investor in Indian securities through regional and global managed GSAM funds. In the meantime, we remain committed to growing our investment banking and securities franchise in India and we continue to feel extremely positive about India as an important and growing market for Goldman Sachs overall.”