HDFC AMC promoter, Standard Life Investments to divest its stake

HDFC Asset Management Company on Tuesday informed the bourses that one of its promoter-Standard Life Investments Limited proposes to sell up to 60,00,000 equity shares, which represent nearly 2.82 per cent of the total issued and paid-up equity share capital of the company.

The offer for sale (OFS) opened on June 17 for non-retail investors while, both retail as well as non-retail investors will be able to subscribe on June 18, 2020. Besides, a minimum 10 per cent of the sale shares will be reserved for retail investors.

The floor price for the sale is fixed at Rs 2,362 apiece, with nearly seven per cent discount on Tuesday’s closing price. In case of oversubscription, the promoters have kept an option to additionally sell up to 60,00,000 equity shares. In the base case, the deal size is around Rs 1,417.2 crore and with an oversubscription of additional shares, it is Rs 2,834.4 crore.

This is in-line with meeting the minimum public shareholding requirement prescribed by the regulator. At present, the minimum public shareholding requirement for listed companies is 25 per cent. As on March 2020, promoters holding in HDFC AMC stands at 79.61 per cent. At present, Standard Life holds 26.89 per cent stake in the company and HDFC holds almost 52.72 per cent.