Abrdn to sell its entire 10.2% stake in HDFC AMC through block deal
Illustration: Ajay Mohanty
UK-based investment firm abrdn Investment Management will offload its entire 10.2 percent stake in HDFC Asset Management Company via block deals on Tuesday.
The company has set the minimum price range for the offer at Rs 1,800, which is a discount of 5 per cent from Monday’s closing price of Rs 1,892.
The sale proceeds of Rs 3,920 crore will be at the lower end of the price range. BofA Securities India will be the investment bank to handle the sale of the shares.
Following the stake sale, abrdn will cease to be a co-sponsor of the HDFC Mutual Fund.
The investment firm announced its decision to sell its entire stake in HDFC AMC in December 2022. At that time, the share was trading near Rs 2,200 and the sale of the stake would have been around Rs 4,700 crores.
After selling the stake, the stake would need to gain about 17 percent to stand a chance of re-entering the MSCI benchmark, according to Nuvama Alternative & Quantitative Research.
“Given that the sale of the entire stake will be added to the free float, HDFC AMC needs to gain about 17 percent before the close in July (could be any day of the last 10 trading sessions) to re-enter the MSCI benchmark at the next revision in August. 2023, Novama said, adding that the listing would generate passive inflows of about $135 million.
First published: June 19, 2023 | 3:44 p.m ist