HDFC AMC soars ~9% as Abrdn Management likely to sell entire stake

20 Jun 2023 , 11:42 AM

According to a term sheet issued by BofA Securities, Abrdn Investment Management, formerly Standard Life, may sell its entire 10.2% stake in HDFC Asset Management Company on Tuesday in an open market transaction.

Abrdn, one of HDFC AMC’s promoters, will sell 2.18 crore shares at an offer price range of Rs 1,800-1,892.45 per unit. At Rs 1,800 per share, the transaction would represent a 4.9% discount to Monday’s NSE closing price of Rs1,892.45 and would fetch an aggregate amount of Rs 3,920 crore to Abrdn.

Abrdn informed HDFC AMC of its plan to sell its entire stake in December 2022. Sebi approved the stake sale and change in ownership in February of this year.

Abrdn, which held a 16.21% stake in HDFC AMC, sold around 6% of the company’s total equity at Rs 2873.79 per share at Rs 3,061 crore in the September 2022 quarter. Abrdn sold a 5.5% stake in HDFC AMC via an offer-for-sale in June 2020. Abrdn sold approximately 2.23% of the total equity in December 2019.

At around 11.33 AM, HDFC AMC was trading 7.40% higher at Rs 2,032.40 per piece, against the previous close of Rs 1,892.45 on NSE. The counter hit an intraday high of Rs 2,063 so far in today’s trade.

For feedback and suggestions, write to us at [e-mail]