HDFC MF shares drop over 4% after Standard Life divests 3.1% stake

HDFC AMC has time until August 2021 to bring down promoter holding to 75 per cent

BS Reporter  |  New Delhi 

Shares of HDFC Asset Management Company dropped over 4 per cent after promoter Standard Life divested 3.1 per cent stake in the asset manager. The share sale done through the offer for sale (OFS) route was to comply with the minimum public shareholding norms. A total of 6.58 million shares were put on the block, with the OFS seeing bids for 7.92 million shares.

Most of the bids came from institutional investors, while shares meant for retail investors were undersubscribed. The floor price for the share sale was set at Rs 3,170 and most of the bids came in at Rs 3,175 per share.

Shares of HDFC AMC fell 4.06 per cent to close at Rs 3,206 in the secondary market. Shares have more than doubled this year.

Currently, the total promoter shareholding in HDFC AMC is 82.71 per cent, with HDFC holding 52.77 per cent and UK’s Standard Life holding 29.84 per cent. With latest share sale, the promoter holding will decline to 79.61 per cent. HDFC AMC has time until August 2021 to bring down promoter holding to 75 per cent.

First Published: Fri, December 06 2019. 02:53 IST

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