Abrdn, a part of HDFC AMC’s promoter group, had proposed to sell the stake in a range of Rs 1,800 to Rs 1,892.45, according to a term sheet reviewed by Reuters.
Shares of HDFC AMC have declined over 17% in the last six months. The BSE 200 index has gained 1.7% in this period. HDFC AMC was a joint venture between Housing Development Finance Corporation (HDFC) and Abrdn. Abrdn has been monetizing its investments in India to shore up its capital reserves in its home market.
In December 2022, Abrdn informed HDFC AMC of its intention to sell its entire stake. In February this year, Sebi gave its nod for the stake sale and change in ownership.
HDFC AMC’s stock jumped as much as 9% to Rs 2,063. It has lost nearly half its value since hitting an all-time high in November 2019.
With the selling overhang from a large promoter receding, HDFC AMC will find some price support in the near term, said Amit Kumar Gupta, founder of equity research firm Fintrekk Capital. The sale also comes ahead of the $40 billion merger between the asset management company’s parent Housing Development Finance Corp and HDFC Bank, scheduled to close next month. (With agency inputs)