 "abrdn")
UK-headquartered investment firm abrdn Investment Management will offload its entire 10.2 per cent stake in HDFC Asset Management Company via block deals on Tuesday.
The company has set the lower end of the offer price range at Rs 1,800, which is at a five per cent discount to Monday's closing price of Rs 1,892.
The proceeds from the sale will amount to Rs 3,920 crore at the lower end of the price band. BofA Securities India will be the investment bank handling the share sale.
After the stake sale, abrdn will cease to be a co-sponsor of HDFC Mutual Fund.
The investment company had announced its decision to sell its entire stake in HDFC AMC in December 2022. At that time, the share was trading close to Rs 2,200 and the stake sale could have fetched around Rs 4,700 crore.
After the stake sale, the share will need to gain around 17 per cent to stand a chance for a re-entry into the MSCI Standard Index, according to Nuvama Alternative & Quantitative Research.
"Considering that the entire stake sale will get added to the free float, HDFC AMC needs to gain approximately 17 per cent before the cut-off date in July (could be any day from the last 10 trading sessions) to make a re-entry in MSCI Standard Index in forthcoming August 2023 review," said Nuvama, adding that the inclusion will lead to passive flows of approximately $135 million.
