HDFC Asset Management Company (AMC) saw its share jump 9% on Tuesday after its UK-based promoter, Aberdeen Investment Management (Abrdn), sold its entire stake via block deals. Abrdn will fully exit the company before the merger with the parent company.

Abrdn would exit HDFC AMC by selling its entire 10.2% stake in the asset management company amounting to 2.18 crore shares. The price range of the offer is Rs 1,800 and Rs 1,892.45, which was at a discount of 4.9% from the closing price on June 19, 2023. The deal is valued at Rs 3,920.1 crore (US$ 478 million) based on the lower end of the price range.

Last month, Abrdn sold its entire stake in another HDFC-owned company, HDFC Life, through open market transactions for Rs 2,069 crore. The investment company sold 3.57 crore shares of HDFC Life at Rs 579.60 apiece on May 31.

At 12:45 pm, shares of HDFC AMC were trading at Rs 2,037, 7.64% higher from the previous closing price. The stock reached an intraday high of Rs 2,063, up nearly 10.5%. 

According to the latest shareholding data available with the exchanges, HDFC AMC was the majority promoter-owned company with a 62.77% stake, including Abrdn Investment with about 10.2% stake, Life Insurance Corp (LIC) owns about 9.21%, while other mutual funds holding approximately 7.23% stake. On the other hand, foreign portfolio investors (FPIs) are sitting with a 7.4% stake.