DHFL exits mutual fund industry by selling 50% stake in DHFL Pramerica

Housing finance, which is the core business of DHFL, is expected to see a slowdown in loan growth

Dewan Housing Finance Corporation (DHFL) on Tuesday announced that it was exiting from the mutual fund (MF) industry by selling its 50 per cent stake in DHFL Pramerica MF to its joint venture partner Pramerica.

According to the press release, “Pramerica Financial (Pramerica), a brand name used by Prudential Financial Inc of the United States, on Tuesday signed a binding term sheet for Pramerica to acquire DHFL’s stake in DHFL Pramerica MF. The transaction is subject to the signing of definitive documentation, customary closing conditions, regulatory and other approvals.”

The transaction will make the AMC a wholly-owned business of PGIM, the global