Abrdn Plans Divestment of 10.2% Stake in HDFC AMC via Block Deal
In a strategic move, Abrdn Investment Management, formerly known as Standard Life, has announced its intention to sell 2.18 crore shares, representing a 10.2% stake, in HDFC Asset Management Company (HDFC AMC) through a block deal scheduled for June 20.
The offer price for this transaction is expected to fall within the range of Rs 1,800 to Rs 1,892.45 per share, as confirmed by Abrdn. If the deal goes through within this price range, it will result in a discount of 0-4.9% compared to the current market price of Rs 1,891.10 per share at the Bombay Stock Exchange (BSE).
The sole broker responsible for facilitating this deal will be Bofa Securities India.
Following this divestment, Abrdn will completely exit its investment in HDFC AMC. As of the end of March 2023, the company held a 10.2% shareholding in HDFC AMC, according to the information disclosed to the BSE for the respective quarterly period.
This move by Abrdn reflects its ongoing strategy to gradually reduce its stake in various companies. On May 31, it successfully sold its entire 1.66% stake in HDFC Life Insurance through a block deal, generating a total of Rs 2,036.7 crore.
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Abrdn, headquartered in the United Kingdom, is listed on the London Stock Exchange and is a prominent member of the FTSE 100 Index. As an active asset manager, it specializes in equities, multi-asset investments, fixed income, liquidity, sovereign wealth funds, real estate, and private markets.
Meanwhile, HDFC AMC has reported positive financial results, with a 10% year-on-year increase in net profit, amounting to Rs 326 crore, during the fourth quarter of FY23. Furthermore, the company’s revenue from operations witnessed a 5% rise, reaching Rs 541 crore.
About HDFC AMC:
HDFC Asset Management Company Limited functions as an investment management firm. It provides portfolio management and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies. HDFC Asset Management serves customers in India.
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