Canada's Manulife to acquire 49% stake for $35 million in Mahindra AMC

Canada-based Manulife on Friday announced a joint venture with Mahindra Asset Management Company (AMC), which would entail the former buying 49 per cent stake in the latter for $35 million (Rs 243 crore). This will be second instance of foreign investment in the Rs 25-trillion mutual fund (MF) industry in the current financial year. 

The deal will value the AMC at 10.4 per cent of its asset size. Historical data collated by HDFC Securities shows the Mahindra AMC-Manulife deal will command among the richest valuation in relation to a fund house’s asset size. 

Commenting on growth prospects of the MF industry, Ashutosh