M&M Financial Services jumps on completing divestment in MF arm to Manulife

Mahindra & Mahindra Financial Services surged 4.72% to Rs 164.25 after the company said it completed the proceedings for divestment of 49% stake in its asset management subsidiary to Manulife.

Mahindra & Mahindra Financial Services on 29 April 2020 completed the proceedings for divestment of 49% stake in its wholly-owned subsidiary, Mahindra Asset Management Company (Mahindra AMC), to Manulife, a leading global financial services group.

Manulife has invested $35 million (about Rs 265 crore) in the 51:49 joint venture, which aims to expand its fund offerings, drive fund penetration, and achieve long term wealth creation in India. The joint venture brings together Mahindra Finance's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world across developed and developing markets.

Manulife is a leading international financial services group, providing wealth and asset management and life insurance solutions for individuals, groups and institutions around the world, with assets under management and administration of over $915 billion as of 31 December 2019.

Mahindra AMC currently offers over 13 investment schemes. It has an annualized average assets under management at Rs 5,217 crore as of 31 March 2020 and over 2.12 lakh customer accounts from 400 cities.

Shares of Mahindra & Mahindra Financial Services extended gains for fourth day. It climbed 16.94% in four sessions from its recent closing low of Rs 140.45 recorded on 24 April 2020.

Mahindra & Mahindra Financial Services, part of the $20.7 billion Mahindra Group, is a non-banking finance company.

The NBFC's consolidated net profit rose 18.19% to Rs 471.65 crore on a 14% increase in total income to Rs 3094.21 crore in Q3 December 2019 over Q3 December 2018.

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