The Hindu Business Line : Three bank outfits keen on GIC MF acquisition

THE sponsors of GIC Mutual Fund, which has been put on the block, have moved one step closer to its sale. The board of the asset management company has decided to meet towards the end of the month to discuss the issue.

The matter of offloading sponsors' stake in the fund, which manages well over Rs 200 crore through several schemes, will come up for consideration. At least three players - SBI MF, LIC MF and Canbank MF - are known to have expressed their willingness to take over the outfit.

The AMC board will be expected to take a view on the bids that have come in so far, indicated the Chief Executive of GIC MF, Mr Thomas Panamthanath.

He, however, declined to say more, adding that only the sponsors will be able to provide further information on the matter. "It is not that we are unaware of the developments. But we cannot reveal more at this juncture", he observed.

The fund has been sponsored by General Insurance Corporation and its former subsidiaries - New India, Oriental, National and United India. SC Management Co of the US, affiliated to the Soros group and represented here by Dr Purnendu Chatterjee, was among the stakeholders as well.

The three bidders, it is felt, are interested in acquiring the MF, keeping in view the nature of the schemes managed by it. The fund has in recent times streamlined its range by rolling back a couple of unviable products, GIC Debt and GIC Gilt. Its liquid scheme has been withdrawn as well, while a close-ended equity-linked savings scheme has been redeemed.

Among the existing schemes is GIC D'Mat, which was promoted actively during its launch some years ago.

It may be mentioned here that the bidders have separately indicated that they are prepared to acquire the MF.

The LIC Managing Director, Mr R.N. Bharadwaj, has pointed out that the asset management arm of Life Insurance Corporation will take it if it gets the opportunity to do so. The Canbank MF Managing Director , Mr N.R. Ramanujam, also noted that his company is keen on the acquisition.

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