What is the logic of IIFL Wealth buying the wealth business of L&T Capital Markets in the current market conditions?

The decision to buy L&T Cap wealth business was taken long back and all the work was already completed. It was only the consummation that happened on 24 April with all the regulatory approvals in place. IIF Wealth has now effectively completed the acquisition of 100% of L&T Capital Markets (LTCM), a subsidiary of L&T Finance Holdings. L&T Capital Markets has assets under advice at Rs.20,807 crore and has marquee individual and institutional clients. The deal was for a total cash consideration of Rs 230 crore plus available cash balance of LTCM. IIFL Wealth currently manages $24 billion largely in the HNI and Ultra HNI segments. According to IIFL Wealth, the LTCM acquisition further strengthens IIFL’s offerings and geographical reach apart from increasing AUM.