HDFL exits AMC biz as PGIM completes buyback

Global asset manager PGIM Wednesday completed the buy-out of its crippled local partner DHFL to take full ownership of DHFL Pramerica Asset Managers. The deal was first announced last December as DHFL's troubles got harder, and has now received necessary approvals including that from capital markets regulator Sebi.

Following the troubles at the domestic partner, DHFL Pramerica MF's assets under management plunged by Rs 2,216 crore in the June quarter to a low Rs 5,412 crore. In a statement, PGIM said subject to regulatory approvals, 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 USD 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. Ajit Menon, the chief executive of PGIM India, said it has a network spread across 27 cities.

The mortgage lender DHFL is undergoing a severe stress triggered by liquidity troubles for non-bank lenders after the troubles at infra lender IL&FS last year. It has been forced to sell its non-core assets and the promoter Wadhawan family is also reportedly mulling a stake sale of its holding..