Standard Life to sell 2.82 pc stake in HDFC AMC via OFS

Standard Life Investments Ltd, one of the promoters of HDFC Asset Management Company, will offload 2.82 per cent stake in the fund house through the offer-for-sale mechanism.

The stake sale will be conducted on the BSE and NSE on January 17 for no-retail?investors and January 18 for retail investors.

In a regulatory filing to stock exchanges, Standard Life has proposed to sell up to 60 lakh equity shares, representing 2.82 per cent of the total issued and paid-up equity share capital of HDFC AMC through offer-for-sale mechanism.

Besides, there will be an option to additionally sell up to 60 lakh equity shares of the fund house in case the oversubscription option is exercised.

The floor price for the sale has been set at Rs 2,362 per equity share. At this price, the promoter will fetch Rs 1,417.2 crore.

Shares of HDFC AMC ended at Rs 2,537.65 apiece on Tuesday, down 2.48 per cent.

The share-sale is being undertaken by the promoter for achieving the minimum public shareholding in the company as prescribed under markets regulator Sebi's norms.

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

Standard Life had sold 47.5 lakh equity shares, representing 2.23 per cent stake, of HDFC AMC through offer-for-sale in December last year.

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As of March this year, Standard Life held 26.89 per cent stake in the mutual fund house, while HDFC owned 52.72 per cent.

In July 2018, HDFC AMC had hit the capital markets to raise an estimated Rs 2,800 crore through initial public offering.