Mumbai, April 6, 2022 (GPN): IDFC Limited
(“IDFC”) and a consortium comprising Bandhan Financial Holdings Limited
(“BFHL”), GIC (“GIC”) and ChrysCapital (“CC”) have entered into a definitive
agreement to acquire IDFC Asset Management Company Limited (“IDFC AMC”) and IDFC AMC Trustee Company Limited from IDFC Limited, for a consideration of INR 4,500 crore subject to receipt of necessary regulatory approvals and customary closing conditions.

The Bandhan consortium was selected
through a highly competitive divestment process which witnessed strong
participation from strategic players and financial investors. This is a highly
tracked acquisition and will be the largest deal in the Indian asset management
industry to date.

The agreement envisages continuity of
the current management team and investment processes at IDFC AMC, helping
unitholders benefit from consistency in the high‐quality investment approach
IDFC AMC is reputed for. This will be supplemented well by Bandhan’s brand as
well as GIC’s and CC’s international network and experience which will aid IDFC
AMC in further cementing its position in the asset management industry and
propel further growth.

Anil Singhvi, Chairman of IDFC Limited
commented: “This transaction is a significant milestone in our plan of
unlocking value and the consideration demonstrates strong position of IDFC AMC
in the Indian Mutual Fund space. We have achieved signing within 6 months of
the Board’s decision to divest, which further demonstrates IDFC Board’s commitment to consummate the merger of IDFC Limited and IDFC Financial Holding
Company with IDFC First Bank. The Bandhan consortium with its strong brand and resources will further strengthen distribution of products and improving
overall experience for IDFC AMC’s investors and distributors.”

Karni S Arha, Managing Director,
Bandhan Financial Holdings Limited said: “Bandhan has always focused on
financial inclusion and making formal financial services available to the
masses. We believe that the asset management industry will be one of the
fastest growing segments in the Indian financial services industry and hence
has been identified as a key vertical in our future growth plans. The
acquisition of IDFC AMC provides us with a scaled‐up asset management platform,
with a stellar management team and a pan India distribution network. IDFC AMC
could benefit significantly from the Bandhan brand and continue strengthening
its position in the asset management industry. Also, we are happy to partner
with marquee investors such as GIC & ChrysCapital and are confident that
this venture will enhance value for all the stakeholders of Bandhan and IDFC
AMC.”

Choo Yong Cheen, Chief Investment
Officer of Private Equity, GIC said: “GIC is pleased to continue our partnership with the Bandhan group and ChrysCapital through this new investment in IDFC AMC. We believe IDFC AMC is in a favourable position to capture the strong secular growth in the currently under‐penetrated Indian asset management industry.”

Mr Ashish Agarwal, Managing Director,
ChrysCapital said: “ChrysCapital is very excited to partner with BFHL and GIC
to buy out IDFC AMC, a quality platform with a seasoned management team. The
Company is well poised for the future with strong industry tailwinds including
increasing financialization of savings and a growing equity culture amongst the
younger generation.”

Citigroup Global Markets India Private
Limited acted as the exclusive financial advisor and Cyril Amarchand Mangaldas
as the legal advisors to IDFC Limited. JM Financial Limited acted as the exclusive financial advisor and Khaitan & Co and Trilegal as the legal advisors to the Bandhan consortium.Ends