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.
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.