Shares of HDFC Asset Management Company rose nearly 5% on Wednesday, December 14, after the company announced that its promoter, abrdn Investment Management, will sell its entire 10.21 percent stake in the company, Business standard reported.
It will place up to 2.11 crore shares, representing 9.9 percent of the total shareholding of HDFC AMC, with a single buyer at this time and offload the remaining 0.31 percent stake separately, the company said in an official filing.
During Wednesday's trade, the stock opened positively at Rs. 2,195 per share against the previous close of Rs. 2,192 per share and grew further in the early trade to touch an intraday high of Rs. 2,296. At 12:45 p.m., the stock was trading at around ₹2,240 apiece, up by 2.14% on the BSE.
The stock touched a 52-week-high of Rs. 2,591.85 on December 6, 2021 and a 52-week-low of Rs. 1,690 on May 24, 2022, indicating that at the current level, the stock is trading over 32 percent above its 52-week low and 11.6 percent below its 52 week high.
The stock has grown over 7 percent in the last one month. Moreover, in the past six month, it has given a positive return of nearly 20 percent. However, the stock has declined almost 11 percent in the last one year.
UK-headquartered investment firm and promoter abrdn Investment Management will cease to be a co-sponsor of HDFC Mutual Fund following the stake sale. The sale of its entire share might pay the company little beyond ₹4,700 crore at the current market pricing.
Through an open market transaction, the firm sold its 5.58 percent ownership in HDFC AMC in August for more than ₹2,300 crore.
Global brokerage house Jefferies maintained a "buy" rating on HDFC AMC with a target price of ₹2,450, implying an upside of 12 percent.
HDFC Asset Management Company Limited is an India-based company that is engaged in providing asset management services to HDFC Mutual Fund. The company also provides portfolio management and segregated account services, including discretionary, non-discretionary and advisory services, to high-net-worth individuals (HNIs), family offices, domestic corporates, trusts, provident funds and domestic and global institutions.
According to a Mintgenie poll, an average of 20 analysts have a ‘BUY’ call on the stock.