Nippon Life India Asset Management Limited (NAM India) on Thursday (November 13) said its board of directors has authorised the company to enter into a strategic collaboration with European asset manager DWS Group GmbH & Co. KGaA.
Under the proposed arrangement, DWS intends to acquire a minority stake of up to 40% in Nippon Life India AIF Management Limited (NAIF), a wholly owned subsidiary of NAM India, by subscribing to fresh equity shares. The collaboration aims to jointly develop an Alternative Investment Fund (AIF) franchise in India.
In addition, NAM India and DWS plan to work together in other areas, including passive investment products and global distribution. The MoU entered into by the parties is non-binding and records the preliminary understanding to facilitate further discussions.
The arrangement is subject to due diligence, execution of definitive agreements, and receipt of regulatory approvals. Shares of Nippon Life India Asset Management Ltd ended at ₹885.50, up by ₹13.25, or 1.52%, on the BSE.