Abrdn likely to exit HDFC AMC; may sell 10.2% stake through block deal

UK-based Abrdn Investment Management Ltd is likely to sell its entire 10.2 per cent stake in HDFC Asset Management Company (AMC) on Tuesday for an estimated Rs 3,920 crore through a block deal, market sources said. The shares will be offloaded at Rs 1,800-1,892 apiece, they added.

This would translate into a discount of 0-5 per cent against the current market price.

The company's stock price slumped by 1.43 per cent to close at Rs 1,891.10 per piece on the BSE on Monday.

Abrdn Investment Management, formerly known as Standard Life, will offload 2.18 crore shares and with the lower end of the floor price, the transaction size would be Rs 3,920 crore.

Following the stake sale, Abrdn would exit from HDFC AMC as the UK-based investment firm was holding a 10.2 per cent stake in the asset management company, shareholding data for the quarter ended March 2023 with the BSE showed.

In December 2022, HDFC Asset AMC announced that Abrdn, one of the promoters, will sell its entire 10.2 per cent stake in the mutual fund.

In August last year, Abrdn Investment divested its 5.58 per cent stake in HDFC AMC for a little over Rs 2,300 crore through an open market transaction.

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Abrdn Investment Management.

In addition to HDFC AMC, another block deal may take place in Timken India Ltd on Tuesday.

Timken Singapore Pte Ltd will sell around 63 lakh shares of Timken India for a floor price of Rs 3,000 per equity share. At this price, the total transaction size would be Rs 1,894 crore, sources said.

The floor price is on a discount to Monday's closing price of Rs 3,488.70 per share.