The deal is said to be valued at 2% of Pramerica’s assets under management.
Dewan Housing Finance Corporation Ltd (DHFCL) is picking up 50% stake in Pramerica Asset Management Company. Founded in 1984, DHFCL is a housing finance company with a focus on providing financial access to lower and middle income customers.
An announcement posted on BSE website said that Dewan Housing is paying Rs. 24.49 crore to form a joint venture with the fund house. The deal is subject to regulatory approval which can take about three to four months.
The joint venture will be renamed as DHFL Pramerica Asset Managers.
“The current management team will continue to manage the business. Over time, we expect to expand our investment strategies, product capabilities and distribution network as we grow our business,” said Vijai Mantri, Managing Director and CEO, Pramerica Mutual Fund in a letter to distributors.
With assets under management of Rs. 2,060 crore, Pramerica ranks 32nd among the 45 asset management companies in India. It started operations in 2010 and has presence in 19 cities across India. The fund house posted a net loss of Rs. 30 crore in FY13-14.
Last year, DHFL and Prudential Financial formed a life insurance joint venture - DHFL Pramerica Life Insurance Company.
