Mahindra Finance joins hand with Manulife, Singapore

Mahindra and Mahindra Finance through its subsidiary Mahindra Asset Management Company Private Limited enter into a joint venture with Manulife to expand the quality and quantity of fund offerings and also for retail fund penetration in India.

Mahindra and Mahindra Financial Services Limited subsidiaries Mahindra Asset Management Company Private Limited (MAMCPL) and Mahindra Trustee Company Private Limited (MTCPL) entered into a share subscription agreement and shareholders’ agreement with Manulife Asset Management (Singapore) Pte. Ltd. (Manulife). Considering this agreement, Manulife will make an investment of  US$34.9 million and US$0.1 million in MAMCPL and MTCPL, respectively. This will give Manulife a representative stake of 49 per cent of the equity share capital of MAMCPL and MTCPL. The remaining 51 per cent stake in both the subsidiaries will remain with Mahindra Finance.

This joint venture is a milestone for Mahindra Finance, said the company in a filing to the exchanges. The money from the venture will be used for expansion of the business, technological advances and channel building.

Manulife is an international financial services group with a global presence and operates as John Hancock in US to provide wealth and asset management and life insurance solutions for individuals, groups and institutions around the world. Combining the strengths of Manulife and Mahindra’s strong domestic market presence, this partnership allows Mahindra Finance to explore more into asset management thus increasing its reach.

On Friday, the stock of Mahindra Finance closed at Rs. 394.30 per share, down by 2.17 per cent or Rs. 8.75 on the BSE. The 52-week high is Rs. 527.45 and 52-week low is Rs. 351.