HDFC AMC rises 2% after adding Rs 25 crore to subsidiary investment

26 Sep 2023 , 12:38 PM

After making new investments in a subsidiary, HDFC Asset Management Company saw a more than 2% increase in its share price in the early trading hours of September 26.

The HDFC AMC stock went up 1.90% to Rs 2721.85 at 10:35 a.m. on the NSE.

HDFC Asset Management Company (HDFC AMC) continues to own a 100% share in HDFC AMC International after investing Rs 25 crore in it. According to a BSE filing from September 25, the firm being acquired is in the financial and consulting services industry.

According to the filing, the acquisition’s goal is to enable the wholly owned subsidiary (WOS) to meet the net worth requirements set forth in the International Financial Services Centres Authority (Fund Management) Regulations, 2022 for registered fund management Entities (Retail), to provide seed capital, if necessary, in certain funds that WOS plans to establish in Gujarat International Finance Tec-City (GIFT) IFSC, and to cover operating and administrative costs.

The Reserve Bank of India (RBI) has approved the purchase of up to 9.5% of each of the DCB Bank and Karur Vysya Bank by HDFC Asset Management Company (AMC). The lender stated in an exchange filing that the approval is good for a year. Additionally, the central bank informed HDFC AMC that its ownership stake in both private banks should not be greater than 9.5%.

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