L&T Finance Limited (LTF), promoted by engineering and construction major Larsen & Toubro (L&T), has entered into MoU for purchase of 100% stake of DBS Cholamandalam Asset Management (DCAM).

The company signed an agreement with Cholamandalam DBS Finance Limited (CDFL) to acquire 100% shareholding of CDFL in DCAM for a consideration of Rs 45 crore adjusted for cash balance and current asset as of date of closing.

However, the deal is subject to appropriate regulatory approvals, which are yet to be obtained. L&T was advised by Equirus Capital on the transaction.

L&T believes that its brand and reach will enable building a robust and valuable assets management business. The average asset under management of DCAM was stood at Rs 2893 crore as of August 31, 2009.