HDFC AMC shares fall on back of Rs 500-crore lifeline for FMP unit holders

Analysts say investors may be concerned on impact on fund house's balance-sheet

Shares of HDFC Asset Management Company (AMC) fell 6 per cent on Tuesday after the fund house decided to offer exit to investors of some of its fixed maturity plans (FMPs) by transferring Rs 500 crore of Essel Group exposures onto its books. 

The move drew mixed response, with analysts concerned about risks getting transferred to shareholders, while the mutual fund (MF) advisors see the move as a positive for unitholders. 

Tuesday’s share price drop was the largest single-day fall for the AMC in nine months. 

As part of the liquidity arrangement announced by the AMC, it would acquire non-convertible debentures of Essel