Sundaram Asset Management receives SEBI approval for purchase of Principal: AMC in India

Chennai, November 19, 2021 - Sundaram Asset Management Company Limited(“Sundaram”), a 100% subsidiary of Sundaram Finance Ltd., has received regulatory approvalfor the purchase of the asset management businesses of Principal Asset Management Pvt. Ltd. (“Principal India”). Sundaram will acquire the schemes managed by Principal India and acquire 100% of the share capital of Principal Asset Management Pvt. Ltd., Principal Trustee Company Pvt. Limited, and Principal Retirement Advisors Pvt. Ltd., originally announced on the 28^th of January 2021.

Leadership from both companies arepleased to report the receipt of final regulatory approvals for the purchasefrom the Competition Commission of India (CCI) and from Securities and Exchange Board of India (SEBI).The transaction is subject to compliance with SEBI prescribed processes and fulfillment of mutually agreed conditions precedent to deal closure.As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments, where such exit load is applicable.

Post deal closure, the schemes currently managed by Principal Indiaand Sundaram will either be merged or renamed as Sundaram schemes in their respective categories. All investors and distributors of Principal India schemes will become investors/distributors of Sundaram.Thus, a wider range of equity schemes will be available to the more than two million combined investor base and to the strengthened distribution franchise across the country-wide network of 88 branches.

Commenting on the acquisition, Mr. Sunil Subramaniam, Managing Director, Sundaram Asset Management Company said,“We look forward to complementingour existing Equities fund management talent with the addition of the team from Principal India. We endeavor to retain and absorb Principal India’s distribution franchise with minimal disruption to their commercial terms. The existence of the same back-office service provider (RTA) is expected to smoothen the transition for existing customers and distributors.”

"As Sundaram acquires our India asset management and retirement advisorybusinesses, our top priority is to ensure the best outcome and a smooth transition for our customers, distributors and employees,"said Mr. Pedro Borda, Chief Operating Officer, Principal International. “We are confident they will benefit from Sundaram’s expanding mutual fund platform.”

Mr. Harsha Viji, Executive Vice Chairman of Sundaram Finance added, “This acquisition is a natural step in our aspiration to become a sizeable player in the asset management industry. The combined business of both the entities will achieve an aspirational landmark of INR 50,000 cr! We will be able to leverage the combined platform to derive significant synergies. The focus for us will be ondelivering a better experience to our investors and distribution partners.”

About Sundaram Asset Management Company:

Sundaram Asset Management Company, established in 1996, is a subsidiary of Sundaram Finance Ltd., one of the most respected financial services players in India. Directly and through its subsidiaries, it manages assets across mutual funds, portfolio management services, alternate investment funds and global funds and advisory mandates. Along with its subsidiaries, it has assets under management of about INR 45,036 crores as of October 31, 2021, of which more than 80% is in equities. The mutual fund operation has a bouquet of seventeen equity and eleven fixed-income funds catering to diverse investor preferences. The brand has a strong retail focus with over 1.3 million active investors and 88 branches across the country.

For more information on Sundaram Mutual Fund and its products, please visit www.sundarammutual.com.

About Sundaram Finance Ltd.

Sundaram Finance Ltd (www.sundaramfinance.in) is one of the most respected financial services players in India with assets under management exceeding INR 30,000 Cr as of October 31, 2021. Incorporated in 1954, Sundaram Finance has an all-India presence with 597 branches. The fixed deposits and long-term borrowings of SFL are rated AAA by CRISIL and ICRA. In addition to financing of Commercial vehicles, Cars, Construction Equipment and Tractors, it offers innovative solutions to its customers including Diesel Finance, other working capital finance for commercial vehicle operators and operating leases to corporates. Sundaram Direct, its distribution brand offers a suite of financial products from its various partners including loans, savings and insurance (both non-life and Life) products to its customers and has an over 2000 strong sales force. SFL through Sundaram Asset Management Ltd. offers various mutual funds, through Sundaram Home Finance Ltd., offers home loans and through Royal Sundaram it offers various non-life insurance products.

About Principal Financial Group®

Principal Financial Group® (Nasdaq: PFG) is a global financial company with 18,000 employees^[1] passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 45.5 million customers^[2] plan, insure, invest, and retire, while working to support the communities where we do business, improve our planet, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the World’s Most Ethical Companies^[3], a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management^[4].” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.

Principal Asset Management Pvt. Ltd has assets under management of INR 9,558 crores as on October 31, 2021 with about 95% in equities.

1. As of September 30, 2021.


2. As of September 30, 2021.


3. Ethisphere Institute, 2021.


4. Pensions & Investments, 2020.

Principal, Principal symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

For Media Enquiries:

Harit S. Tank

Phone: 022–30100215 Mobile: +91 98194 55607.

Email: harittank@sundarammutual.com or harit.smf@gmail.com

Ajit Narasimhan

Phone: 044–28569900/ Dir.: 044–28569805 Mobile: +91 98840 88925.

Email: ajitn@sundarammutual.com

Anand Rao

Phone: +91 98201 99367

Email: anand.rao@genesis-bcw.com