Corporate Moves: Mergers, Acquisitions & Stake Sales

June's corporate-deal flow ranged from a landmark public-sector merger to a string of large open-market stake sales in listed fintechs and consumer names, several of them cleared by the Competition Commission of India along the way.

REC–Power Finance Corporation merger. President Droupadi Murmu approved the merger of REC Limited into Power Finance Corporation Limited, a move that comes nearly seven years after PFC first acquired the government's majority stake in REC. The Ministry of Power communicated the approval, framing the merger as a way to build a larger, stronger public-sector power-financing institution and to strengthen public-sector NBFCs more broadly. PFC itself was established in 1986, is headquartered in New Delhi, and is headed by Parminder Chopra.

Insurance sector. The Ministry of Corporate Affairs approved the incorporation of Mahindra Manulife Insurance Limited, a new 50:50 life-insurance joint venture between India's Mahindra Group and Canada's Manulife Financial Corporation, aimed at delivering AI-native, digitally-led insurance under a broader "Insurance for All" positioning; Suresh Agarwal was named MD & CEO-designate. Separately, the Competition Commission of India cleared Sanlam Emerging Markets (Mauritius) Limited's acquisition of a 2.80% stake in Shriram Life Insurance Company via preferential issue — Sanlam being part of South Africa's Sanlam Group.

Paytm. Global institutional investors — Goldman Sachs, Societe Generale, BNP Paribas, Citigroup Global Markets, Ghisallo Capital Management, Copthall Mauritius Investment and Viridian Asset Management — collectively acquired a 1.34% stake in One97 Communications (Paytm) through open-market transactions worth roughly ₹963 crore. Domestic institutional buyers in the same round included Sundaram Mutual Fund, Nippon India Mutual Fund, Edelweiss Mutual Fund and India Acorn ICAV. The shares were sold by SAIF Partners through its affiliates SAIF III Mauritius Company Ltd and SAIF Partners India IV Ltd.

GMR Airports. Fidelity International bought a 1.85% stake in GMR Airports Limited — 19.50 crore equity shares, valued at approximately ₹1,906 crore, at an average price of ₹97.75 per share — from GQG Partners, sold through GQG's Emerging Markets Equity Fund via open-market operations.

Lenskart. SoftBank Group, via its affiliate SoftBank Vision Fund II Lightbulb (Cayman) Ltd, divested a 3.25% stake in Lenskart Solutions, selling 5.65 crore shares at an average price of ₹508.55 per share for a total of roughly ₹2,873.30 crore, taking SoftBank's remaining holding down from 13.13% to 9.88%. Separately, the Abu Dhabi Investment Authority-backed Platinum Jasmine A 2018 Trust announced plans to sell a further 2.3% stake in Lenskart through a block deal valued at approximately ₹1,944 crore (around USD 204 million).

Capital Small Finance Bank. Oman India Joint Investment Fund II (OIJIF II) — a private-equity vehicle promoted by Oman's sovereign wealth fund and the State Bank of India — sold its entire 3.65% stake to Lyptus Punch-Card Fund.

Asset management and financial services (CCI clearances). The Competition Commission of India cleared: TVS Emerald Limited and TVS Venu Management and Consultancy Services acquiring 100% of PGIM India Asset Management and PGIM India Trustees; Kedaara Pearl Holding and Kedaara Capital Fund IV AIF taking an equity stake in Axis Finance Limited; and Honda Motor Co., Ltd. acquiring a 21% voting stake in Astemo, Ltd. from Hitachi, Ltd.

About the Competition Commission of India: a statutory body under the Ministry of Corporate Affairs, enforcing the Competition Act, 2002; founded 14 October 2003; headquartered in New Delhi; Chairperson Ravneet Kaur.

Chapter 9 Quiz

1. Which two public-sector power-financing entities merged this month, with government approval? — REC Limited merged into Power Finance Corporation
2. Who bought Fidelity's stake in GMR Airports, and from whom? — Fidelity International bought it from GQG Partners, ~₹1,906 crore
3. What was SoftBank's remaining stake in Lenskart after its June divestment? — 9.88%, down from 13.13%
4. Which Canadian insurer partnered with Mahindra Group in a new 50:50 life-insurance JV? — Manulife Financial Corporation
5. Which sovereign-linked fund sold its Capital Small Finance Bank stake, and who bought it? — Oman India Joint Investment Fund II sold to Lyptus Punch-Card Fund
6. What percentage stake did Honda Motor acquire in Astemo Ltd, and from which seller? — 21% voting stake, from Hitachi Ltd