Shares of IndusInd Bank were gaining after the lender is set to form a mutual fund joint venture with a global asset manager by acquiring a 60% stake in the latter’s India arm.

What Happened: IndusInd International Holdings Ltd, a Mauritius-based investment firm led by the Hinduja brothers, will acquire a 60% stake in Invesco Asset Management India to form an asset management joint venture. The exact financial terms of the deal were not disclosed.

Invesco Mutual Fund, a global player managing about $1.6 trillion (₹133 lakh crore) in assets globally, will retain a 40% stake in the joint venture. Its Indian arm currently manages assets worth ₹85,393 crore.

See Also: BofA Securities Invests In This Vijay Kedia-Backed Micro Cap Stock

Background: IIHL, which is also a promoter of IndusInd Bank, India's fifth-largest private sector lender, recently acquired Reliance Capital Ltd and its subsidiaries through a resolution plan approved by the National Companies Law Tribunal.

“It was our vision to transform IIHL into a BFSI (banking, financial services and insurance) powerhouse,” said Ashok Hinduja, chairman of IIHL, in a statement announcing the joint venture.

IIHL’s investment portfolio includes IndusInd Bank, Sterling Bank and Trust Ltd-Bahamas, capital market assets like Afrinex Exchange Ltd-Mauritius with a cumulative listing of $13.5 billion of underlying securities, and wealth management services through Beryllus Capital in the UK, Switzerland and Singapore.

Invesco Mutual Fund entered the Indian market in late 2008 with the acquisition of the mutual fund assets of Lotus India Asset Management Co.

Price Action: IndusInd’s share price was up 0.42% at ₹1,561.55 near the start of trade on Wednesday.

Read Next: U.S. And Taiwan Chip Giants Now Locked In Battle For India’s Auto Crown: Report