Standard Life to sell stake in HDFC AMC through OFS route

By: |
Published: December 4, 2019 3:17:29 AM

In an exchange filing, the UK-based Standard Life Investments cited the need to comply with local regulations as the reason for the sale of shares.

Currently, promoters own an 82.7% stake in the company, which will fall to around 80% after the OFS. The company will sell around 4.75 lakh equity shares.

Standard Life Investments, one of the promoters of HDFC Asset Management Company (AMC), will sell 2.23% of its 30% stake in the company through the offer for sale (OFS) route during December 4-5. HDFC AMC will raise over Rs 1,500 crore through the OFS.

The company will be offering its shares at a floor price of Rs 3,170 per equity share. In an exchange filing, the UK-based Standard Life Investments cited the need to comply with local regulations as the reason for the sale of shares.

“The sale is being undertaken by the Seller for achieving the minimum public shareholding in the company, as prescribed under Rules 19(2)(b) read with 19(A) of the Securities Contracts (Regulation) Rules, 1957 and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” Standard Life Investments said.

Currently, promoters own an 82.7% stake in the company, which will fall to around 80% after the OFS. The company will sell around 4.75 lakh equity shares. The sale will take place on Wednesday for institutional investors and for retail investors, the stake sale will take place on Thursday. DSP Merrill Lynch will be the broker for the deal. Around 25% of the shares would be reserved for mutual funds and 10% for retail investors.

 

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Bharti Airtel shares stage marginal recovery; Vodafone Idea dips 9 per cent
2Rupee ends steady ahead of RBI monetary policy outcome
3HDFC AMC OFS opens tomorrow: Standard Life to offload stake; check price, other details