Abrdn Investment Management has trimmed its stake in one of India’s largest mutual fund investment companies.
The U.K.-based unit of Abrdn Plc. sale of about 1.28 crore shares or 6% stake in HDFC Asset Management Co., it said in a filing on the London Stock Exchange. The investment firm sold shares at Rs 1,935.5 apiece, nearly a 10% discount from the current market levels.
The sale will result in Abdrn receiving around Rs 2,195.8 crore, net of taxes and expenses, from the sale. “The company intends to use the proceeds for general corporate purposes,” it said in the filing.
Abrdn’s holding in HDFC AMC stands at 10.21% after the sale. “The value of this remaining shareholding is approximately Rs 4,260 crore, based on the share price of Rs 1,956.5,” it said.
Abrdn said its remaining holding will continue to provide it the right to nominate a director to the board of HDFC AMC.
Shares of HDFC AMC jumped as much as 13.4%, the most in at least a year, after the block trade went through. Of the 24 analysts tracking the company, 18 maintain ‘buy’, four suggest ‘hold’ and two recommend ‘sell’. The overall consensus price of analysts tracked by Bloomberg implies an upside of 1.1%.