HDFC AMC shares jump 8% on stake sale by promoter Abrdn Investment - Economic Times

Shares of HDFC Asset Management Company (AMC) jumped 8% in the opening trade on Tuesday after promoter Abrdn Investment Management exited the company via block deals.

The offer price was at Rs 1,800 – Rs 1,892.45 per share which was at a discount of 4.9% from the closing price of Rs 1,892.45 on June 19, 2023.

Under the deal, the UK-based Abrdn sold its entire 10.2% stake, comprising 2.18 crore shares in HDFC AMC at a price of Rs 3,920.1 crore (US$ 478 million) based on the lower end of the price range.

According to the latest shareholding data available with the exchanges, HDFC AMC was the majority promoter-owned company with a 62.77% stake. Abrdn Investment, which is also part of the promoter group, held about 10.2% stake, as of the March quarter.

Meanwhile, among the public shareholders, mutual funds have about 7.23% stake while Life Insurance Corp (LIC) owns about 9.21%. Foreign portfolio investors (FPIs), on the other hand, are sitting with a 7.4% stake.

This is the second stake sale in the HDFC-owned company for Abrdn ahead of the merger. Last month, it offloaded its entire stake to private insurer HDFC Life through open market transactions.
With the stake sale in HDFC Life, the UK investor has made 14 times its investment, earning Rs 34,000 crore since 2017. Abrdn, which had been a partner in the joint venture with HDFC Life, made investments of Rs 2,400 crore since 2000.In the fourth quarter, HDFC AMC's standalone net profit jumped 10% to Rs 376 crore, compared with Rs 343 crore in the same period last year.

Revenue from operations, meanwhile, rose 5% to Rs 541 crore for the quarter ended March against Rs 516 crore in the corresponding quarter of last year.

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HDFC AMC shares jump 8% on stake sale by promoter Abrdn Investment - Economic Times
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