Muthoot Finance Ltd is set to acquire IDBI Asset Management Ltd and the deal, which is in its final stage, is expected to close this week, reported livemint, citing three people aware of the development.

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According to the report, as on March 31, IDBI Bank owned 66.67 percent stake in IDBI Asset Management with IDBI Capital Markets and Securities holding a 33.33 percent stake.

“The deal is expected to close this week. Initially, the binding offers had come in from Muthoot Finance and Vikas Khemani’s Carnelian Capital Advisors Llp," one of the three sources cited by the paper was quoted in the report.

IDBI Asset Management managed 22 schemes during FY19, comprising 12 equity fund schemes, six debt fund schemes, two-hybrid fund schemes and one each Gold Fund of Funds and Gold Exchange Traded Funds scheme, the report said.

Owned by Life Insurance Corporation of India (LIC), IDBI Bank Ltd is seeking to sell its non-core assets, including equity stakes. It has hired ICICI Securities Ltd as an adviser, the report added.

The bank is also looking to exit its life insurance joint venture, IDBI Federal Life Insurance Co. Ltd, in which it holds a 48 percent stake, while Federal Bank and Ageas own 26 percent each.