Summary of Key Information:
Nature of Filing / Announcement: Outcome of Board Meeting - Acquisition Approval
Corporate Actions:
- Approved acquisition of portfolio management services (PMS) business from ICICI Securities Limited by way of slump sale as a going concern
- Approved execution of business transfer agreement between the Company and ICICI Securities
- Acquisition subject to approvals under applicable laws including SEBI approval
- Transaction expected to be completed within one year subject to receipt of necessary approvals
Financial Details of Acquisition:
- Assets Under Management (AUM) of PMS business: ₹29.10 billion as on March 31, 2026
- Consideration: Cash consideration based on fair value determined by independent valuer
- Acquisition cost: 1.20% of the actual AUM to be transferred (to be determined on transfer date)
Business Background of Acquired Entity:
- ICICI Securities PMS business caters primarily to High-net-worth individuals (HNIs)
- Provides professionally managed and customized investment solutions
- Offers diversified range of investment strategies across discretionary, non-discretionary and advisory mandates
- Investment approaches include direct equity, smart beta and multi-asset approaches
Financial Performance of PMS Business:
Revenue history for last 3 years:
- FY 2024: ₹14.94 crores
- FY 2025: ₹25.30 crores
- FY 2026: ₹20.88 crores
Regulatory and Governance Aspects:
- Constitutes a related party transaction (ICICI Securities is wholly owned subsidiary of ICICI Bank Limited, the promoter of the Company)
- Transaction will be done at arms' length basis
- Requires SEBI and other regulatory approvals as may be required
Strategic Rationale:
- The acquisition would enable the Company to broaden the Company's existing portfolio management services offerings