GQG Partners sells 1.6% stake in HDFC Asset Management for Rs 397 crore

 GQG Partners has sold a portion of its ownership in HDFC Asset Management Company (AMC) on Monday through open market transactions.

About 24.7 lakh shares, or 1.16% of the company’s ownership, were sold by GQG Partners for close to Rs 397 crore. According to bulk deal data, the agreement was signed at an average weighted price of Rs1,600.85 per equity share.

The emerging market fund of GQG Partners owned 2.28% in HDFC AMC as of the December quarter.

SBI Mutual Fund, meanwhile, invested in the business by purchasing 47.3 lakh shares, or 2.2% equity, on the open market.

Promoters and the promoter group own the majority of HDFC AMC, holding 62.78% of the company’s stock, compared to public investors, who hold roughly 37.22%. Abrdn Investment Management and the firm’s promoter, HDFC, each own 16.2% of the company.

While mutual funds own 3.07% of the publicly traded stock, overseas investors together own 22%.

On Monday, HDFC AMC shares on NSE closed 0.17% higher at Rs1,681 per share. The stock experienced an intraday 52-week low. The shares have been declining throughout 2023, dropping as much as 23% so far in the year.

One of the top asset management firms in India, HDFC AMC has total assets under management (AUM) of more than Rs4 lakh crore.

Individual investors provided 66% of the company’s total monthly average AUM as of December 31, 2022, compared to 58% for the industry.

The most recent December quarter saw a 3% increase in net profit at Rs369 crore, according to HDFC AMC. The HDFC Group company’s operating revenue increased 2% year over year to Rs559.6 crore in the third quarter.

Operating profit from the company’s primary asset management division for the quarter was unchanged at Rs397.4 crore.

Its quarterly average AUM market share was 11%, and compared to the industry average of 50:50, its closing AUM is split 55:45 between equity- and non-equity-oriented assets.

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