UK-based institutional investor Abrdn Investment Management Ltd will sell its entire 10.2% stake in India’s HDFC Asset Management Company Ltd (HDFC AMC) today for Rs 3,920 crore or more. HDFC AMC shares will be sold on the screen-based trading platform of NSE and BSE, at an offer price range of Rs 1,800-1,892.45 per share, representing a potential discount of 0.0% to 4.9% to Monday’s closing price of Rs 1,892.45, said BofA – the sole book runner for the sale.
The sale corresponds to approximately 21.778 million shares, accounting for approximately 10.2% of the existing total outstanding shares of HDFC AMC. It’s important to note that this is a 100% secondary offering. The brokerage commission and other charges for the transaction amount to 25 basis points, which will be paid by the buyer. Additionally, normal market charges will apply. The exchange rate used for the deal is 81.9425 INR/USD, based on the Bloomberg USDINR rate as of June 19, 2023.
However, it should be noted that there is no guarantee that any order for shares will be fully or partially met. The allocation of shares is subject to operational mechanics and the screen-based trading mechanism of the Indian stock exchanges. The board lot for the transaction is one share, and BofA Securities India Limited will act as the broker for the block deal. Investors and market participants eagerly await the outcome of this block deal, which is expected to have a significant impact on HDFC AMC’s shareholding structure and market dynamics.