Bank of India gains after picking up 51% stake in Bharti Axa MF

State-run Bank of India (BoI) today rose 1.73% to Rs. 346.60 in opening trade on BSE after the state-run bank agreed on Saturday to buy 51% stake in Bharti AXA Mutual Fund for an undisclosed amount.

The stock hit a high of Rs 349.50 and a low of Rs 341.05 during the day. It had hit a 52-week low of Rs 290.25 on 26 August 2011.

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“Bank of India and Axa Investment Managers Asia Holdings (a subsidiary of Axa Investment Managers, part of the Axa Group) have agreed to enter into a joint venture in asset management business carried on by Bharti Axa Investment Managers,” a joint statement from the companies said here. Bharti Axa Investment Managers is the asset management arm to Bharti Axa Mutual Fund, which is owned by telecom major Bharti Airtel and French financial services giant Axa Group.

“Under the proposed joint venture, BoI will acquire 51 per cent equity and the balance will be with the Axa Group,” the statement added. Ernst & Young India were the advisors to the transaction.

Agencies