New Delhi, Sept. 29 (PTI): The General Insurance Corporation (GIC) is likely to buy out the 40 per cent stake held by the Soros-Chatterjee group in its mutual fund arm.
“The Soros-Chatterjee group’s SC Management Company Inc of the US wants to quit GIC Asset Management Company. We may be buying out their stake,” GIC managing director P. B. Ramanujan said.
He, however, added that the board of directors is yet to take a final decision on this issue.
GIC Mutual Fund was set up in December 1990 by the PSU general insurers and the asset management company was incorporated in May 1993 with an equity of Rs 20 crore in line with Sebi norms.
GIC and its four erstwhile arms—New India Assurance, Oriental Insurance, National Insurance and United India Insurance—have a 49.5 per cent stake in GIC AMC.
GIC Housing Finance has 10.5 per cent while SC Management Inc holds the balance 40 per cent stake in the AMC.
Although it could not be ascertained why the Soros-Chatterjee group wants to exit the mutual fund joint venture, Ramanujan said the fund’s overall performance was impressive.
“Except three equity schemes, the fund was doing well,” he said. The performances of three equity-linked schemes including GIC Rise-91 and GIC Rise-II were below expectations due to the market slump.