Promoter Abrdn Investment Management to exit HDFC AMC via block deals; shares zoom

HDFC Asset Management Company (AMC) shares soared on Tuesday after its promoter, Abrdn Investment Management (formerly Standard Life Investments), lined up its entire 10.2 per cent holding in the Indian company in block deals. HDFC AMC shares — traded on the bourses with the symbol HDFCAMC — rose by Rs 168.9 or 8.9 per cent to Rs 2,060 apiece on BSE, coming within Rs 254 of a 52-week high touched in December 2022.

After the deal, Abrdn Investment will completely exit HDFC AMC. The deal will be carried out at Rs 1,800-1,892.5 per share, as against the previous close of Rs 1,891.1 apiece. In other words, the lower end of the price band implies a discount of 4.8 per cent to the market price.

The development comes ahead of the completion of the mega HDFC-HDFC Bank merger that is set to create a financial services behemoth. 

At the end of March 2023, Abrdn Investment Management held a 10.2 per cent stake in HDFC AMC.

Abrdn Investment had in December 2022 announced its decision to exit HDFC AMC. 

EDITOR'S TAKE | Supply-related concerns in market over big block deals

Zee Business Managing Editor Anil Singhvi pointed out that a slew of big block deals in the recent past have triggered concerns about supply in the market. 

"Block deals worth around Rs 11,500 crore have taken place over the past few weeks... There is slight fear of oversupply in the market owing to these big block deals, which can limit upside for the time being," he said. 

HDFC sells HDFC Credila for Rs 9,060 crore 

In a separate development, HDFC sold a 90 per cent stake in education loan arm, HDFC Credila, to a consortium of private equity firms including ChrysCapital for Rs 9,060 crore.

HDFC shares slipped by as much as Rs 23 or 0.9 per cent to Rs 2,632 apiece on the bourse.   

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