Fidelity Investments is in talks to sell its India mutual fund business, The Economic Times today reported, citing a person with direct knowledge of the development.
The Boston, Massachusetts-based American multinational financial services company with $1.5 trillion in assets under management as of 2010, is seeking a valuation of Rs1,000 crore ($202 million) for its Indian asset management arm.
Fidelity Investments, which operates in India through its asset management company called FIL Fund Management Private Limited, may retain a small investment team in India that will continue to advise India-focused offshore funds, said the report.
Fidelity Investments has appointed advisors, who last week circulated a "request for proposal" to prospective bidders and investment companies like Goldman Sachs may be interested in the assets, the person told the paper.
Fidelity started operations in India in 2004 and managed assets worth around Rs9,000 crore as of end 2011, the paper said, citing data from the Association of Mutual Funds of India.
Fidelity Investments comprises two independent but closely cooperating companies - Fidelity Management and Research LLC (FMR) of the US and the global Fidelity International Limited (FIL).