Bank of Baroda and BNP Paribas MF arms merge to form Baroda BNP Paribas AMC

The merged entity will manage Rs 22,522 crore in assets

Padmaja Choudhury   /   March 21, 2022

 

Effective 14th March, the Bank of Baroda and BNP Paribas have merged to become Baroda BNP Paribas Mutual Fund. 

In 2019, the Bank of Baroda announced Baroda AMC’s merger with BNP Paribas AMC without any proposed cash consideration. Further, the proposed merger received the securities market regulator SEBI’s approval in January 2022. The companies have entered into a strategic combination that combines both the companies’ strengths and capture each other’s market base. 

The new entity will offer customized financial products designed explicitly for retail and institutional investors. Baroda BNB Paribas Mutual Funds will offer 28 schemes across equity, hybrid, debt, and overseas fund-of-fund categories. The merger aims to provide services to more than 1 million investors and 10,000 distributors by covering 90 cities and towns in India. 

As per the merger agreements of both the companies, the parent company of Baroda AMC, Bank of Baroda, will hold 50.1% of the stake in the merged company, and the remaining 49.9% of the stake will be held by BNP Paribas, parent of BNP Paribas AMC, a leading European Bank. 

Suresh Soni, the former head of Baroda Asset Management India, is appointed as the CEO of Baroda BNP Mutual Fund.

By following the procedure required in the merger of the companies, investors of both the companies have been givenan exit option within the period of one month, which ended on the 4th March 2022. 

The merged company is up for managing assets worth Rs.22,522 crores and looking forward to providing financial advisory services to offshore clients. AAUM for the quarter ended 31st December 2021 for Baroda Mutual Fund was Rs 12,769 crore, and BNP Paribas Mutual Fund was Rs 9,116 crore, as per AMFI data. 

The merger has an objective of expanding its scale by utilizing Baroda’s customers and enhancing its strength by using the expertise & experience of BNP Paribas. 

On the merger of Baroda AMC with BNP Paribas, David Vaillant, Global Head of Finance, Strategy and Participations, BNP Paribas Asset Management, said that “This strategic partnership will enable us to expand in terms of scale and client outreach, as well as to grow our distribution network, and will provide Baroda BNP Paribas Mutual Fund with our global experience in managing assets across more than 30 markets”.

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