Come Monday, IDFC Mutual Fund will adopt the new brand identity of Bandhan Mutual Fund, months after it received the regulatory clearances for the change in its ownership.
Henceforth, the word ‘IDFC’ connected to each scheme of the fund house will be replaced by the word ‘Bandhan’, it said in a statement on Saturday.
However, the investment strategy, processes, and team will remain unchanged.
Commenting on the new brand identity, Vishal Kapoor, the chief executive officer of the asset management company (AMC), in the release, said, the “new name reflects our new sponsorship, and we are proud to be a part of the Bandhan Group. Our investors will continue to benefit from the same passion, expertise, and focus they have experienced over the years.”
He added, “At the heart of this rebranding, which includes a change of the name and the logo, is the belief that financial security and prosperity are not just for the few, but for everyone.
Kapoor said the rebranding marks a new chapter in the fund house’s journey and starting Monday, investors can access the fund house’s new website, bandhanmutual.com.
In December last year, the Securities and Exchange Board of India (Sebi) granted “no objection” to IDFC Mutual Fund’s proposed ownership change after a consortium of Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital expressed their interest in acquiring it.
Sebi’s approval came after the Reserve Bank of India (RBI) gave its nod to the merger in the prior month following the Competition Commission of India’s (CCI) permission in August 2022.
The Board of Directors of IDFC Limited and IDFC Financial Holding Company Limited, in April 2022, had approved the sale of IDFC AMC and IDFC AMC Trustee Company Limited to the consortium. According to the deal, BFHL will own around 60 per cent, and GIC and ChrysCapital will acquire about 20 per cent stake each in IDFC AMC.
At the time, IDFC AMC had said BFHL would sponsor the mutual fund, and there would be no change in the management team. The transition process was expected to complete in around two months, with at least a 30-day exit window for investors.
Exit Window
In the case of a merger or acquisition of a fund house, the rules provide investors the option to exit the schemes without any cost. However, investors can continue to hold onto their investments as the transition does not affect the plans except for the name change.
Following Sebi’s approval, in an email to investors, the fund house informed, “The proposed changes do not cause any change in the management of our schemes. Hence, you should see your investments continue to be managed in line with the scheme’s current strategy and with the same discipline that you have come to expect of us.”
