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HDFC AMC slides as Standard Life's OFS begins

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Capital Market
Last Updated : Aug 27 2020 | 12:16 PM IST

HDFC Asset Management Company (HDFC AMC) fell 2.51% to Rs 2474 as its offer for sale (OFS) opened for non-retail investors today.

Promoter Standard Life Investment offered to sell a total of 60 lakh shares, or 2.82% stake, through the OFS. The floor price for the OFS was set at Rs 2,362 each, a 6.92% discount to the closing price of Rs 2537.65 on Tuesday.

In the event the oversubscription, Standard Life proposes to sell another 60 lakh equity shares. In total, Standard Life plans to sell 1.2 crore equity shares of HDFC AMC representing 5.64% of total paid-up equity capital of the company.

The OFS opened on Wednesday (17 June) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (18 June).

As per the base offer, the company has set aside 6 lakh shares of retail investors and 54 lakh shares for non-retail investors. Incase of oversubscription, the allocation for each category will double i.e. 12 lakh shares for retail investors and 1.08 crore shares of non-retail investors.

As on 12:55 IST, the OFS received subscription for 33,17,179 shares or 61.43% against the base non-retail offer size of 54 lakh shares.

As at end-March 2020, Standard Life Investments held 26.89% stake in HDFC AMC, while Housing Development Finance Corporation (HDFC) owned 52.72%.

HDFC AMC's net profit fell 9.5% to Rs 249.83 crore on a 17.9% fall in total income to Rs 449.62 crore in Q4 March 2020 over Q4 March 2019

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HDFC Asset Management Company (AMC) is investment manager to HDFC Mutual Fund. The company has a diversified asset class mix across equity and fixed income/others. It also has a countrywide network of branches along with a diversified distribution network comprising banks, independent financial advisors and national distributors.

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First Published: Jun 17 2020 | 12:48 PM IST

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