Cash-strapped Dewan Housing Finance Corporation (DHFL) has exited the asset management business by selling its entire stake to its joint venture partner PGLH of Delaware Inc.

The deal will ensure that the US-based company will take over the entire control of DHFL Pramerica Asset Managers which manages about ₹5,400-crore of assets.

Dewan Housing Finance Corporation held 17.12 per cent stake directly in DHFL Pramerica Asset Managers and 32.88 per cent stake through its wholly owned subsidiary, DHFL Advisory and Investments.

Both these companies sold the entire 50 per cent stake to PGLH of Delaware Inc.

Last December, the trouble-ridden DHFL announced its plan to sell off the asset management business and had received necessary approvals including that from capital market regulator SEBI.

In a statement, PGIM, (the global investment management business of US-based Prudential Financial Inc, which is known as Pramerica in India), said subject to regulatory approvals, the local fund house will now be called PGIM India Mutual Fund and also announced the appointment of Srinivas Rao Ravuri as the chief investment officer for equities.

PGIM global chief executive Glen Baptist said the acquisition by his company, which manages a pool of over $1.2 trillion globally, should be seen as a “deep commitment” to deliver high quality and innovative solutions for long-term investment needs of people.

Ajit Menon, Chief Executive of PGIM India, said it has a network spread across 27 cities.

The mortgage lender DHFL is undergoing a severe stress triggered by liquidity constraint for non-banking finance sector after the troubles at infrastructure lender IL&FS last year. It has been forced to sell its non-core assets and the promoter Wadhawan family is also reportedly mulling a stake sale of its holding.

Related Topics
comment COMMENT NOW