Chola Mutual Fund plans to buy out Cazenoves stake

The Chennai-based Muruguppa Group, which holds 51% stake in the Cholamandalam Cazenove Mutual Fund plans to buy out the stake of the foreign partner, Cazenove Fund Management UK. At present, Cholamandalam Investment & Finance Company (CIFCO) an associate of Muruguppa group and Cazenove Fund Management UK (49% stake) are the joint sponsors of the Cholamandalam Cazenove Mutual Fund. The Indian partner is waiting for the nod from SEBI, to approve the buy-out.

Since the start of operations in January 1997, CCAMC has launched eight schemes - five open-ended and three close-ended debt funds. The AMC has largely been a debt player with only one equity fund - Chola Freedom Technology (erstwhile, Chola Freedom Growth). The AMC manages assets worth Rs 703 crore under its schemes as on March 31, 2001.

The buy-out, if fructifies, would be the third of its kind so far in the mutual fund industry. Earlier, the AV Birla Group had bought out Capital International's stake in their MF joint venture and the Tata Group that of Dresdner RCM's 20 % stake in Tata AMC.