Moneycontrol PRO
Open App

HDFC AMC surges after 5.6% equity stake changes hands on BSE; Aberdeen Investment likely largest seller

Currently, only Life Insurance Corporation of India, Housing Development Finance Corporation and Aberdeen Investment Management hold more than 5.6 percent stake in the asset management firm

Mumbai / August 16, 2022 / 11:09 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shares of HDFC Asset Management Company surged 10 percent in the early trade on August 16 after a large block trade took place on the counter.

As many as 11.95 million shares or 5.6 percent stake in the company changed hands on the BSE at Rs 1,944.3 per share.

Currently, only Life Insurance Corporation of India, Housing Development Finance Corporation and Aberdeen Investment Management hold more than 5.6 percent stake in the asset management firm.

A report by CNBC-TV18 said that Aberdeen Investment could likely be the seller of the large stake in the asset manager.

The block deal in the stock comes after a strong rally in the counter over the last three months. Shares of the asset manager have risen 21.5 percent in the past 90 days on the back of visible signs of recovery in its earnings.

Close

While net profit slid 9 percent over the year-ago quarter and operating profit grew merely 2 percent on-year, HDFC AMC showed signs of regaining some of the lost market share in equity inflows into the industry.

The company’s management also pointed towards efforts to improve its share of systematic investment plans in the mutual fund industry while its margin profile is also expected to improve going ahead.

“While we recognize that turn-around in flows driven by performance is unlikely to be immediate, especially given the present state of the markets, we believe current valuations post the de-rating provide a balanced risk-reward,” brokerage firm Kotak Institutional Equities had said in a recent note.

At 10:44 am, shares of HDFC AMC were up 10 percent at Rs 2151.75 apiece on the BSE, while the benchmark Sensex was at 59,866.71, up 403.93 points or 0.68 percent.
Moneycontrol News
first published: Aug 16, 2022 11:04 am
Sections
ISO 27001 - BSI Assurance Mark