HDFC AMC OFS opens for subscription tomorrow, in which Standard Life looks to offload some stake.
HDFC AMC OFS opens for subscription tomorrow, in which Standard Life looks to offload some stake. Standard Life will sell 1.81% stake in HDFC AMC on the two dates. Notably, Rs 3,170 has been set as the floor price for the issue. HDFC AMC shares closed 1.35% higher at Rs 3,441.45 on BSE. In the quarter ended September-19, HDFC Asset Management Company (AMC) reported a 79% jump in profit after tax at Rs 368.3 crore. In comparison, the fund house had posted a profit after tax (PAT) of Rs 205.9 crore in the year-ago period, HDFC AMC. The firm’s total income rose by 7% to Rs 549 crore in July-September quarter of the ongoing fiscal from Rs 515.3 crore in the same period last fiscal.
The fund house’ total expenses plunged by 44 per cent to Rs 121.5 crore in the quarter under review. Given the recent run up in the stock price, many brokerages have a hold rating on the stock from buy earlier. “Given HDFC AMC’s strong positioning and superior earnings profile, the business deserves a premium valuation. However, a recent price spike appears to factor in all positives. Factoring in tax cut benefits, we revise our Target higher to Rs 3,040,” ICICI Securities said in a note. Interstingly, the shares have more than doubled in the year so far, up more than 126%.
In November, the world’s biggest index compiler MSCI had announced that HDFC AMC would be included in its India index. MSCI has added eight Indian stocks including HDFC AMC, Info Edge (India) and Indraprastha Gas Ltd to its India Index, while removing Vodafone Idea, Yes Bank and four others that have seen significant market capitalisation erosion this year. Those deleted include Bharat Heavy Electricals Ltd (BHEL), Glenmark Pharmaceuticals, Indiabulls Housing Finance, L&T Finance Holdings, Vodafone-Idea Ltd and Yes Bank, MSCI said in a statement.