UK's abrdn exits India's HDFC Asset Management Co in $432 mln stake sale (updated)

HDFC Asset Management

20/06/2023 08:20

(Adds details on the sale in paragraph 2, analyst comment in
paragraph 4, background and stock move)
       June 20 (Reuters) - British asset manager abrdn plc
 ABDN.L  said on Tuesday it sold its entire 10.2% stake in
India's HDFC Asset Management Co Ltd  HDFA.NS  for about 35.47
billion rupees (about $432 million).
    Abrdn, a part of HDFC AMC's promoter group, had proposed to
sell the stake in a range of 1,800 rupees to 1,892.45 rupees,
according to a term sheet reviewed by Reuters.
    HDFC AMC's stock jumped as much as 9% to 2,063 rupees. It
has lost nearly half its value since hitting an all-time high in
November 2019.
    With the selling overhang from a large promoter receding,
HDFC AMC will find some price support in the near term, said
Amit Kumar Gupta, founder of equity research firm Fintrekk
Capital.
    The sale also comes ahead of the $40 billion merger between
the asset management company's parent Housing Development
Finance Corp  HDFC.NS  and HDFC Bank  HDBK.NS , scheduled to
close next month.
 
 ($1 = 82.1300 Indian rupees)

 (Reporting by NR Sethuraman and Aby Jose Koilparambil in
Bengaluru, Scott Murdoch in Sydney; Editing by Dhanya Ann
Thoppil and Savio D'Souza)
 ((abyjose.koilparambil@thomsonreuters.com; +917483275231;))