During early trade on June 20, shares of HDFC Asset Management surged 9% despite Abrdn Management, formerly Standard Life, the exit of its entire stake in the company via block deals. A total of 2.18 crore shares, or 10.2 per cent of the company, were traded on the exchanges for an average price of Rs. 1,873, which is 1 per cent less than the NSE’s closing price on Monday of Rs. 1,892.45 per share.
The deal was worth a total of Rs 4,083.14 crore. This transaction had only BoFA Securities as a broker. According to the most recent shareholding information available with the exchanges, HDFC AMC was the majority promoter-owned company with a 62.77% stake. As of the March quarter, Abrdn Investment, which is also a member of the promoter group, owned about 10.2% of the company.
Ahead of the merger, Abrdn has sold a second stake in the business owned by HDFC. Through open market transactions, it sold its entire stake to private insurer HDFC Life last month.
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Since 2017, the UK investor has earned Rs 34,000 crore through stake sale in HDFC Life, returning 14 times its initial investment. Since 2000, Abrdn, which had joined HDFC Life in a joint venture, has invested Rs 2,400 crore. In comparison to the same period last year, HDFC AMC’s standalone net profit increased 10% to Rs 376 crore in the fourth quarter, from Rs 343 crore. In the meantime, operating revenue increased 5% to Rs 541 crore for the quarter that ended in March from Rs 516 crore in the same quarter last year.
Mutual funds make up about 7.23% of the public shareholders, while Life Insurance Corp (LIC) owns about 9.21%. On the other hand, foreign portfolio investors (FPIs) currently hold a 7.4% stake. Shares of HDFC AMC were trading at Rs 2,036.55 at 9:20 a.m. on the National Stock Exchange, up 7.61 per cent.
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