Abrdn stake sale to boost passive flows in HDFC AMC, say analysts

Deal could add to asset manager's investability weight in MSCI and FTSE indices, lead to higher foreign inclusion factor, they say

The proposed sale of 10.21 per cent stake in HDFC Asset Management Company (AMC) by abrdn could result in the stock’s inclusion in the MSCI India Index during the quarterly rebalancing in February. Further, it could boost the asset manager’s investability weight in the MSCI and FTSE indices as it will lead to a higher foreign inclusion factor (FIF), said analysts.

Shares of HDFC AMC on Wednesday rose 3.7 per cent to close at Rs 2,273.5. HDFC AMC on Tuesday announced that co-promoter UK-based Abrdn is looking to sell its entire stake in the company.

Interestingly, abrdn is looking to