HDFC Asset Management Company share price fell 3 percent intraday on December 4 after foreign promoter Standard Life Investments started selling some stake in the company through offer for sale.
The two-day offer for sale issue has opened for subscription today only for non-retail investors. On December 5, it will remain open for non-retail as well as retail investors.
The floor price for the issue has been fixed at Rs 3,170, a discount of 7.88 percent to Tuesday’s closing price.
Standard Life Investments on December 3 told exchanges that through offer for sale, it would sell upto 47,50,000 equity shares (representing 2.23 percent of the total paid up equity share capital) of HDFC Asset Management Company, with an option to additionally sell up to 38,50,000 equity shares (representing 1.81 percent).
The portion set aside for retail investors stood at 10 percent of total issue size.
At floor price, the size of offer is Rs 1,506 crore and if the company managed to sell additional shares also, then it would increase to Rs 2,726 crore.
The sell of shares by Standard Life is to achieve the minimum public shareholding norms in HDFC AMC.
Promoters including HDFC held 82.70 percent stake in the company, of which Standard Life Investments’ shareholding stood at 29.94 percent as of September 2019.
The stock was quoting at Rs 3,408.45, down Rs 33.00, or 0.96 percent on the BSE at 1022 hours IST. However, it already rallied 131 percent in last nine months.
News Source:- Moneycontrol