Mahindra & Mahindra Financial Services has sold just under half of its wholly-owned asset management subsidiary to Manulife Investment Management.
Through the sale, Manulife aims to expand its fund offerings, drive fund penetration and achieve long-term wealth creation in India.
It paid $35m (£28.1m, €32.3m) for the 49% stake.
Growing in India
The acquired business, Mahindra Asset Management Company (AMC), is described as one of the fastest growing asset management companies in India.
It currently offers around 13 investment schemes and has over 200,000 customer accounts across 400 cities.
The joint venture brings together Mahindra Finance’s domestic market strength with Manulife’s global wealth and asset management capabilities.
Ramesh Iyer, vice chairman and managing director of Mahindra Finance said the companies “share a common vision of building a market leading asset management business in India”.
The president and chief executive, global wealth and asset management at Manulife Investment Management, Paul Lorentz, added that the firm is partnering with Mahindra Finance to “increase awareness and accessibility of retail mutual fund product in India”.