US-based investment manager Invesco has entered into an agreement to buy a 49% stake in India’s Religare Asset Management Company.

The asset management arm of Religare Enterprises is among the top 15 AMs in India with combined (onshore and offshore advisory) AUM of over $2.6 billion as at end-August this year, with a presence in 53 cities across the country.

At present Invesco has a presence in Mumbai through its affiliate, WL Ross & Co., and it also operated an enterprise centre in Hyderabad, which was first opened in 2006 and employs more than 600 staff across a range of global support functions.

“This addition will enhance Invesco’s presence in an important and growing market, while providing Religare’s clients access to our broad range of investment solutions,” says Martin Flanagan, president and CEO of Invesco, in a statement.

“Our agreement with Religare will expand the comprehensive range of investment capabilities Invesco provides to our retail and institutional clients around the world, and further position both firms for long-term success.”

Religare AMC only began operations at the end of 2008, but since then has recorded a four-fold increase in its combined AUM, according to a joint statement issued today to announce the deal.

Shachindra Nath, group CEO of Religare Enterprises, describes this investment as a validation of its belief in the long-term growth potential of India’s financial services industry.

“Religare’s asset management business has consistently focused on developing its investment capabilities through a well-defined, proprietary investment process both in equity and fixed income,” he is quoted as saying.

“With a good three-year performance track record and solid revenue growth, we believe that both our retail and offshore businesses would be propelled to the next level of their growth journey.”

The joint-venture, Religare Invesco Asset Management, will be headed by the present chief executive of Religare AMC, Saurabh Nanavati, along with its existing management team.

The transaction, financial details of which were not included, is subject to regulatory approval. JP Morgan acted as sole financial adviser to Religare Enterprises on this deal.