PGIM India's Asset Management Unit Attracts Bids from Groww and Edelweiss Amid Strategic Review
In a move signaling potential consolidation within India's booming asset management industry, PGIM India Asset Management has emerged as a takeover target for at least two major domestic players. According to sources familiar with the matter, bids have been submitted by Groww Asset Management and Edelweiss Asset Management for the Indian unit of Prudential Financial's global investment arm.
The interest comes on the heels of reports earlier this month that PGIM is conducting a strategic review of its Indian operations, with Ernst & Young (EY) reportedly advising on a potential sale. The unit, acquired from Deutsche Bank nearly a decade ago, has struggled to gain significant market share and has reported consecutive annual losses.
"This is a classic case of a global player finding the Indian market tougher to crack than anticipated," said financial analyst Rohan Mehta. "While the asset base of around ₹266 billion ($3bn) is respectable, the lack of profitability and scale has likely prompted PGIM to reconsider its commitment."
Sources indicate that discussions are at a preliminary stage and no final agreements have been reached. Both PGIM and the potential acquirers declined to comment when contacted.
The development underscores the fierce competition and attractive growth prospects in India's asset management sector, which has seen a surge in foreign and domestic investment. Just this month, State Street Investment Management acquired a minority stake in Groww AMC. Earlier this year, Westbridge Capital invested in Edelweiss AMC, and Sanlam Emerging Markets took a position in Shriram AMC.
For potential buyers, the attraction lies in acquiring an established platform, operational licenses, and a trained workforce, albeit one that needs a turnaround. PGIM India's latest annual report shows its after-tax losses widened to over ₹235 million ($2.6m) for the fiscal year ending March 2025.
Market Voices
Arjun Kapoor, Portfolio Manager: "This is a logical strategic move. For Groww or Edelweiss, acquiring an existing operation is faster than building from scratch. The key will be integrating the business and reversing the loss-making trend in a cost-effective manner."
Priya Sharma, Financial Journalist: "It highlights the dichotomy of the Indian market—immense potential but brutally competitive. Global firms often underestimate the need for hyper-localized strategies and distribution networks."
Vikram Singh, Retail Investor Advocate (sharper tone): "Another foreign firm cutting and running when the going gets tough? It's disappointing but not surprising. They reap the rewards in good times but lack the patience for a long-term build. This 'acquire-struggle-sell' pattern does little for investor confidence in their commitment."
Neha Desai, Fintech Consultant: "Look at the timing. This interest coincides with massive digital adoption in Indian finance. Firms like Groww see value in a traditional asset manager's book that can be modernized and scaled through their tech platforms. It's a hybrid play."
The outcome of the sale process will be closely watched as a barometer for both the valuation of mid-sized asset managers and the appetite of well-funded domestic firms to expand through acquisitions.