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M&M Fin sells 49% in AMC arm to Canada firm for $35 mn

“Currently, our market share in the mutual fund business is nearly 4 per cent and we look to grow and add new segment of investors,” said Ashutosh Bishnoi, managing director and CEO, Mahindra AMC.

By: ENS Economic Bureau |
June 22, 2019 1:21:12 am

Mahindra & Mahindra Finance on Friday said its asset management arm had entered into an agreement with Canada-based investment firm Manulife to divest a 49 per cent stake in its asset management arm for a consideration of $35 million.

Mahindra Asset Management will own 51 per cent of the venture. The Canadian firm’s stake is valued at $35 million, which will in turn value Mahindra AMC at nearly $70 million. “The investment by Manulife will go the our asset management arm which will help us boost the retail outreach in our AMC business,” said Ramesh Iyer, VC & MD, Mahindra Finance. Mahindra AMC’s assets under management (AUM) amounted to Rs 5,000 crore, of which Rs 3,000 crore comes from institutional investors. The management feels they have enough scope to build its retail book.

“Currently, our market share in the mutual fund business is nearly 4 per cent and we look to grow and add new segment of investors,” said Ashutosh Bishnoi, managing director and CEO, Mahindra AMC.

On the liquidity situation, Iyer said Mahindra Finance is not finding any pressure as of now. “Look at our balance sheet, we have an excellent ALM match. So we don’t have any liquidity pressure in the sense of our ability to raise funds,” he said.

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