Approval for the transaction is required from the UK's Financial Conduct Authority and India's Reserve Bank and Securities Exchange Board. 

Once completed, AssetCo will integrate Ocean Dial into its River and Mercantile brand, along with other active equity asset managers, including SVM Asset Management, Saracen Fund Managers and Revera.

The three companies have been bought by AssetCo in the past two years for a combined £16.3million, as part of Mr Gilbert's efforts to create a prominent new British wealth and asset management player.

The Edinburgh-based group, which previously leased fire engines and ambulance vehicles to the emergency services, has also built up stakes in Parmenion Capital Partners and exchange traded funds provider Rize ETF.

City grandee Gilbert said the firm's 'mission is to acquire, improve and grow asset management businesses with potential'.

He added: 'We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial together with the other active equity asset management businesses we are combining under the River and Mercantile brand.'

Gilbert became AssetCo's chairman two years ago, soon after he purchased a large stake in the cash shell as part of a consortium that included Toscafund Asset Management and his longtime colleague Peter McKellar.

Prior to that, he co-founded and spent over three decades in charge of Aberdeen Asset Management and its successor Standard Life Aberdeen,.

AssetCo's latest takeover announcement comes a couple of weeks after it declared falling to a £9.3million loss for the 12 months ending September due partly to costs associated with acquisitions.

were 0.7 per cent up at 68.5p on late Monday afternoon, although their value has plunged by more than half in the past 12 months.