HDFC Mutual Fund today acquired 7.69 per cent stake in toll management company MEP Infrastructure Developers through open market transactions.
Individually, HDFC MF picked up 90 lakh equity shares of MEP Infrastructure at BSE and another 35 lakh shares at the National Stock Exchange (NSE) through block deals, the fund house said in a statement.
The block deal amounted to 7.69 per cent equity of the company, it added.
Currently, the fund house holds 4.25 per cent stake in the company.
Apart from HDFC MF, Reliance Mutual Fund and Birla Sunlife Mutual Fund Fund are some of the investors in the firm.
HDFC MF is known for its stock picking where it has created value for its unit holders over long term and with the fund house buying big chunk of MEP infrastructure the stock certainly looks interesting going forward, the fund house said.
Following the transaction, shares of MEP Infrastructure surged by 9.75 per cent to close at Rs 56.30 on the BSE.
MEP Infrastructure commenced its business with collection of toll at the five Mumbai entry points in December 2002. As on August 31, 2015, the company has completed 84 projects, with an aggregate of 143 toll plazas and 919 lanes.