Dewan picks up 50 per cent stake in Pramerica AMC

Buys stake for Rs 24.49 crore, deal values the company at 1.18% of its AUM

Dewan Housing Finance Corporation Limited (DHFL) has picked up a 50 percent stake in Pramerica Asset Managers, according to a statement from the fund house and an exchange announcement by the company.

Dewan bought the stake for Rs.24.49 crore, according to the exchange statement.

The deal values the company at 1.18 per cent of its assets under management. The mutual fund had average assets under management of Rs.2060.21 crore at the end of the September quarter, according to data on its website.

Earlier Prudential Financial, a global asset manager, held 100 per cent stake in the company.

"Under the terms of the new asset management joint venture agreement, each company will own 50 percent of the business. The joint venture company will be renamed DHFL Pramerica Asset Managers Pvt. Ltd., following regulatory approvals and closure of the transaction," according to the statement that the fund house issued.

The two companies already work together in the insurance space. The joint venture is called DHFL Pramerica Life Insurance Company

The fund house had revenues of Rs.12.76 crore and a net loss of Rs.29.33 crore in the financial year ending in March 2014, according to the AMC financials. It had a net loss of Rs.67.19 crore in the previous year.