In a formal announcement, one of the leading financial services groups of India, Religare Enterprises (REL), confirmed that it has agreed to acquire Lotus India asset management company (Lotus India AMC) from its majority shareholders - Alexandra Fund Management and Sabre Capital.

Informing the Bombay Stock Exchange of the intended proceedings, REL said that its board of directors has approved a proposal to discuss, negotiate and finalize the terms for acquiring 100 per cent or majority equity shareholding of Lotus.

The company release saying that Lotus manages funds in excess of Rs 5,000 crore in domestic mutual funds, added: “Religare will immediately strengthen its position by infusing additional funds in to the schemes of Lotus India AMC. Existing investors in Lotus mutual funds will continue to be supported and served in a seamless fashion.”

REL made the acquisition with intent to further strengthen its position in asset management space in the Indian market. It already has an existing presence in the asset management space through a joint venture with Aegon. 

Sunil Godhwani, CEO and managing director, REL said: “We are delighted to take on a business that has been backed and promoted by institutions of such stature and pedigree, and look forward to take it to next level of growth.” He also added that like all other businesses that REL operates globally, this move too is committed towards building the company further as a business of excellence with a leadership position.