UK’s Standard Life, one of the promoters of HDFC Asset Management Company, is looking to sell up to 10.6 million shares of the mutual fund constituting 5 per cent total equity through a block deal on Wednesday to raise to Rs 3042 crore, according to a term sheet issued by JP Morgan.
The floor price has been fixed at Rs 2,870 apiece, a 6.65 per cent discount to Tuesday’s closing price of Rs 3074.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. As of June 30, 2021, Standard Life held a 21.23 per cent stake in the mutual fund house, while HDFC owned 52.65 per cent
Standard Life Aberdeen has been monetizing its investments in India as part of its plans at the parent level to shore up capital reserves in its home markets.
Last June, Standard Life sold a 5.5 per cent stake in HDFC AMC through the offer for sale route to comply with Sebi’s minimum public holding norms. Earlier in December 2019, Standard Life Investments sold 47.5 lakh equity shares, representing 2.23 per cent of the total equity share capital.
Source: Economic Times