Shares of HDFC Asset Management Co. fell after opening firm on Wednesday a day after UK-based investment firm Abrdn PLC sold its entire stake of 10.2% via a block deal.
The co-promoter's stake was bought by marquee names like SBI Mutual fund, Zulia Investments, Smallcap World Fund, Societe Generale, Morgan Stanley, Mirae Asset and others.
SBI Mutual Fund bought 33.34 lakh shares (1.56%), Zulia Investments bought 16.26 lakh shares (0.76%), Smallcap bought 37.24 lakh shares (1.74%), and Societe Generale bought 12.25 lakh shares (0.57%) at Rs 1,873 apiece. Morgan Stanley, Mirae Asset Financial Group, Vanguard Group Inc., Nippon India and the Kuwait Investment Authority were other investors who bought the stake in the company.
Abrdn had 80,515,200 shares during the initial public offering (38.24%), which was brought down to 63,650,615 (30.03%) after the IPO, according to the red herring prospectus filed by HDFC AMC.
Abrdn had divested 5.58% for a little over Rs 2,300 crore through an open market transaction last August.
Despite the stake sale, HDFC AMC stock rallied as stock was purchased by marquee investors.
Shares of HDFC AMC rose to intra-day high of 0.98% before falling 1.99% to Rs 2,063 apiece as of 1.45 pm, as compared to a 0.19% advance in the NSE Nifty 50.
Of the 21 analysts tracking the company, 14 maintain a buy rating on the stock, five recommend a hold and two suggest sell, according to Bloomberg data. The average 12-month analyst price target implies a potential downside of 3.3%.
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