Sundaram Asset Management Company on Friday said it has received the approval of the Securities and Exchange Board of India to acquire Principal Asset Management Company Pvt Ltd .

Sundaram AMC, which is a subsidiary of Sundaram Finance, will acquire the schemes managed by Principal India and 100 per cent of the share capital of Principal Asset Management Pvt Ltd, Principal Trustee Company Pvt Ltd and Principal Retirement Advisors.

Sundaram and Principal had announced the deal in January, though they did not put any figure .

For the half year ended September 30, 2021, Sundaram AMC had assets under management of Rs 43,057 crore of which around 80 per cent was in equity.

Profits in the asset management businesses grew from Rs 19 crore in the first half of last year to Rs 48 crore in April-September 2021.

Final regulatory approvals have been received from the capital markets watchdog and also the Competition Commission of India (CCI), a Sundaram AMC release said.

As per regulatory requirements, there will be an “exit load free window” for investors to redeem their investments, where such exit load is applicable.

Schemes managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes, while investors and distributors of Principal India schemes will become investors or distributors of Sundaram.

The total combined investor base is 20 lakh.