Promoter of HDFC Asset Management Company to sell 2.23 per cent stake

HDFC Asset Management’s promoter, Standard Life Investments, is selling around 2.23 per cent stake, representing 4,750,000 equity shares of total equity share capital of the company. The floor price for the sale has been fixed at Rs. 3,170, which is at a discount of nearly 8 per cent from Tuesday’s closing price.

Further, the company may choose to sell another 1.81 per cent of the total equity share capital in the case of oversubscription of OFS.

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 and, as on September 2019 ended quarter, the promoter holding in HDFC Asset is at 82.70 per cent, reduced marginally from 82.72 per cent in March 2019.

Besides, during budget speech, the Finance Minister has asked marker regulator, SEBI, to consider raising the public shareholding requirement to 35 per cent.

For non-retail investors, the sale shall take place today on a separate window of the Stock Exchanges. For retail investors (individual with sale not more than Rs. 2,00,000), the sale shall take place on December 05, 2019.

From the recent high, the stock has already corrected by around 11 per cent. In today’s trading, the stock is trading in the negative terrain at Rs. 3,414 apiece.