HSBC AMC agrees to buy L&T Investment Management for Rs 3,200 crore

L&T Investment Management posted a profit before tax of Rs 185 crore and income from operations of Rs 348 crore for FY ended March 2021.

HSBC Asset Management India, a wholly-owned subsidiary of HSBC, on Friday said that it has entered into an agreement with L&T Finance to acquire the business of L&T Investment Management Limited (LTIM) for Rs 3,200 crore.

L&T Investment Management is a wholly-owned subsidiary of L&T Finance Holdings. The company has assets under management of Rs 80,300 crore and have more than 2.4 million active mutual fund folios as of September 2021. The company posted its revenue from the operations of Rs 348 crore and profit before tax of Rs 185 crore for the FY ended March 2021.


The proposed acquisition will help HSBC AMC to strengthen its business in India. Presently the company is a minor player in the industry with assets under management of Rs 12,000 crore. The acquisition is subject to regulatory approvals. Post-acquisition of the company, HSBC has plans to merge the company with their existing business in India.

“This transaction will strengthen and complement our business in India and makes us one of Asia’s leading wealth management companies. By combining the business of LTIM with HSBC AMC in India, it gives us the scale, market reach and capabilities to capture some of the 15-20 per cent annual asset management market growth expected in India over the next five years,” said Noel Quinn, HSBC’s Group CEO.