Business

Manulife to invest $35 mn for 49% in Mahindra AMC

Fresh shares to be issued to JV partner

Mahindra AMC, a subsidiary of Mahindra and Mahindra Financial Services, has entered into an agreement with Manulife Asset Management (Singapore) Pte Ltd., in which M&M Financial Services will have 51% stake in the AMC arm and the foreign partner, 49%.

“With 49% stake, Manulife will bring in $35 million into the business,” said Ramesh Iyer, vice-chairman and MD, Mahindra Finance. Mahindra Finance, which has 100% stake in the venture, will see its stake diluting due to fresh issuance of shares.

Explaining the rationale behind the venture, Mr. Iyer said, “What we understand well is India and the need of a consumer. So, if we can get someone who can convert the understanding into a product much faster....”

Mahindra AMC plans to beef up growth with this partnership in the retail segment. “We have a small base with ₹5,000 crore assets now, of which retail in ₹1,300 crore. What we are saying is, ₹1,300 crore of retail, does it have the ability to become ₹5,000 crore in the next three years,” Mr. Iyer said.

“We will give more focus on how many customers we will underwrite rather than what size we have underwritten,” he added.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Mar 31, 2020 6:05:38 PM | https://www.thehindu.com/business/manulife-to-invest-35-mn-for-49-in-mahindra-amc/article28103059.ece

Next Story