Edinburgh-based Abrdn Investment Management Ltd. has written to HDFC Asset Management Co. to seek approvals to sell its entire stake in the mutual fund house.
"...the Company is in receipt of letter from Abrdn Investment Management Ltd., one of the promoters holding 10.21% of the paid-up share capital of the company, intimating their intention to sell the entire stake in the Company subject to applicable regulatory provisions," said HDFC AMC in an exchange filing on Tuesday.
In its letter dated Dec. 6, Abrdn said it wishes to place up to 2.11 crore shares, representing 9.9% of the total shareholding of HDFC AMC, with a single buyer at this time and offload the remaining 0.31% stake separately.
The global investment company is classified as a sponsor of HDFC Mutual Fund under the SEBI (Mutual Funds) Regulations, 1996, according to Abrdn's letter addressed to the Indian company.
Abrdn has requested HDFC AMC to "make necessary applications for approvals required (if any) from HDFC Trustee Company Ltd. and/or Securities and Exchange Board of India" for "Abrdn's shareholding in the company to be less than 10%", and "Abrdn to cease being a sponsor of HDFC Mutual Fund".
"Consequent to the proposed stake sale, Abrdn Investment Management Limited will cease to be a co-sponsor of HDFC Mutual Fund under SEBI (Mutual Funds) Regulations, 1996," HDFC AMC said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.