HDFC AMC falls 5% as Standard Life's OFS begins

Standard Life Investments, one of the promoters in HDFC AMC, is looking to offload up to 2.82 per cent stake in the company through OFS, which opened today and will close Thursday.

Shares of HDFC Asset Management Company (AMC) slipped 5 per cent to Rs 2,406.80 at 03:12 pm on the BSE on Wednesday as Standard Life Investments' offer for sale (OFS) opened for non-retail investors today.

Standard Life Investments, one of the promoters in HDFC AMC, is looking to offload up to 2.82 per cent stake in the company through OFS, which opened on Wednesday and will close Thursday. The OFS of up to 6 million shares will be floated at floor price of Rs 2,362 per share, which is at 6.8 per cent discount to the stock’s closing price on NSE on Tuesday.

The OFS is being undertaken to meet the minimum public shareholding norms. As of March-end quarter, the promoter shareholding in HDFC AMC stood at 79.61 per cent. Sebi norms require promoter holdings to bring to 75 per cent or lower. 

In December 2019, Standard Life had floated an OFS to sell 2.23 per cent stake in HDFC AMC.

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 5.4 million shares for non-retail investors. In the case of oversubscription, the allocation for each category will double i.e. 1.2 million shares for retail investors and 1.08 crore shares of non-retail investors.