South Africa’s largest asset manager with $80 bn in AUM has entered Indian Asset Management Market with Strategic
Investment in Shriram AMC.
- Sanlam already has a long term relationship of more than 20 years with the Shriram Group.
- It’s an investor into their insurance business, was previously invested into Shriram Finance and has also set up a wealth JV with the group.
- It’s now investing Rs 105 cr for 23% stake in the AMC valuing the business at Rs 456 cr.
- The current mcap of the Company is around Rs 580 cr
- Sanlam is joining as a Co-promoter and not just a financial partner.
- The overall promoter stake in the Company will increase to 71.17% from 62.55% currently.
- It’s entry will boost ‘quantamental’ investing, expand product innovation, and attract top talent into the business.
- Board of the Company will be reconstituted to represent Sanlam’s interest.
- Shriram AMC had previously received funding of Rs 37 cr from Mission1 Investments LLC in 2022 for a 23% stake. Mission’s stake will now dilute to 17.7%.
It seems Sanlam has got an attractive valuation due to it’s global size and hence the credibility it brings into the business.