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In March 2023, the board of directors of Indiabulls AMC had approved a sponsorship shift from Indiabulls Housing Finance to Nextbillion Technologies (NBT), the promoter of online investment platform Groww.
In accordance with the company's asset-light strategy, Indiabulls Housing Finance Ltd. had previously announced its decision to sell its mutual fund division in order to consolidate capital and concentrate on growing its real estate asset management business through Alternate Investment Fund.
Recently, Groww, a Fintech unicorn acquires mutual fund business of Indiabulls Housing Finance for Rs 175.62 crore. According to Indiabulls stock exchange filing, the closure of the transaction occurs almost two years after Groww and IBHFL's subsidiaries Indiabulls Asset Management Co (IAMCL) and Indiabulls Trustee Co (the trustee of IAMCL) signed a definitive agreement in May 2021 to acquire the mutual fund business.
However, Indiabulls Housing Finance has demerged and retained the Alternate Investment Fund (AIF), which was also held under IAMCL. The mutual fund portion of the company is the only element of Indiabulls AMC that is being sold.
Now since the acquisition has been completed, Indiabulls Mutual Fund will be renamed as 'Groww Mutual Fund'. Investors are therefore notified that SEBI approved the change in Indiabulls Mutual Fund's scheme names, effective May 30, 2023, as a result of Groww's acquisition of the company.
The schemes of Indiabulls Mutual Fund will be renamed as follows:
(Source: Indiabulls AMC letter to unitholders)
Read: Indiabulls Mutual Fund will now be Groww Mutual Fund
Groww to Acquire Indiabulls Mutual Fund. What Does it Mean for Investors?