HDFC Asset Management dips 3% as promoter looks to offload stake

Shares of HDFC Asset Management fell as much as 3 per cent to Rs 3,334 in early trade on the BSE on Wednesday after one of the promoters, Standard Life Investments, offered to offload 2.3 per cent stake in the fund house.

In a regulatory filing to exchanges, Standard Life proposed to sell up to 4.75 million equity shares, or 2.23 per cent of the total issued and paid-up equity share capital of HDFC AMC, with an option to sell additional 3.85 million shares, or 1.81 per cent of the equity, through offer-for-sale mechanism. READ THE FILING HERE

The floor price has been set at Rs 3,170 per equity share, which is at a discount of over 8 per cent to Tuesday's close of Rs 3,441.

The stake-sale will be conducted on the BSE and NSE today for institutional investors and December 5 for retail investors.

The share-sale is being undertaken by the promoter for achieving the minimum public shareholding in the company as prescribed under markets regulator Sebi's norm.

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. As of September, Standard Life held 29.94 per cent stake in the mutual fund house, while HDFC owned 52.76 per cent.

At 9:50 AM, the stock was down 1.5 per cent at Rs 3,389.65 as compared to 0.14 per cent gain in the benchmark S&P BSE Sensex. A total of 4.72 lakh shares of HDFC AMC had changed on the NSE and BSE so far.

In October, Standard Life had divested 4.95 per cent stake in HDFC Life Insurance Company for a little over Rs 5,750 crore through open market transactions.