Industrial Development Bank of India is to divest its entire equity stake in IDBI-Principal Asset Management Company to joint venture partner Principal Financial Group for Rs 94 crore (Rs 940 million).

The divestment, subject to statutory and regulatory approvals, is under a 'Sale and Purchase Agreement' with Principal Financial Group Mauritius Ltd, IDBI informed the Bombay Stock Exchange on Saturday.

IDBI would divest its 50 per cent stake in IDBI-Principal Trustee Company Ltd (I-P TCL) and all trust corpus rights of IDBI Mutual Fund to principal or nominees, it added.

IDBI and Principal Financial Group had entered into a tie-up in April 2000, with a 50:50 equity stake. The AMC currently manages 17 schemes with total corpus of Rs 1,754 crore (Rs 17.54 billion) as on February 28, 2003.

The company operates around 16 debt schemes, four short-term debt schemes, four equity and debt schemes and five gilt fund schemes.

I-P AMC's largest corpus is under income fund with around Rs 610.76 crore (Rs 6.11 billion), followed by cash management at Rs 396.81 crore (Rs 3.97 billion) and equity at Rs 62.5 crore (Rs 625 million).