Nomura acquires 35% stake in LIC MF

Nomura acquires 35% stake in LIC MFJapan based asset management company, Nomura has acquired 35 per cent stake worth Rs 308 crore in LIC Mutual Fund, becoming a strategic partner of LICMF Trustee and LIC Mutual Fund Asset Management Company Limited (LICMF AMC).

LIC sold stake through fresh issue of equity and secondary sale. LIC and LIC Housing Finance will hold 45 per cent and 20 per cent respectively in the AMC as per agreement. The move will enable LIC to take advantage of Nomura's expertise in the area of equity management and capital generation.

Takumi Shibata, Deputy President and COO, Nomura Holdings said, "By building on LIC's outstanding brand image and customer network, we will be able to apply best practices to our combined business through our extensive experience as a global asset manager."

Expressing satisfaction over valuation of the company, T S Vijayan, Chairman, Life Insurance Corporation said that LIC has very limited fund requirements and it is not going to list LICMF at this point of time.

LIC will offer Rs 228 crore, out of Rs 308 crore brought in by Nomura, to stakeholders while remaining Rs 80 crore will be injected in to LIC MF AMC.

Sushobhan Sarkar, CEO, LIC MF AMC, said, "The valuation is in line with valuations in the mutual fund industry. Besides, our portfolio consists largely of debt schemes."