DHFL sells stake to PGLH, exits AMC space

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

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

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

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

The trouble-ridden DHFL earlier had declared its plan to sell off the asset management business and had received necessary approvals including that from SEBI.

In a statement, PGIM, the global investment management business of US-based Prudential Financial Inc, which is known as Pramerica in India, said 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.