HDFC Asset Management Company (AMC) stock price fell almost 5% on Wednesday after the company announced that Standard Life Investments, one of its promoters, will be selling 2.2% stake in the company through Offer For Sale (OFS) on 4-5 December.
The stock price of HDFC AMC opened with a loss of 2.66% at Rs 3,350. Later, the stock fell to the day's low of Rs 3,276, losing 4.8% against its last closing price of Rs 3,441.45 on BSE.
0.87 lakh and 18.55 lakh shares traded on BSE and NSE, both above the 5,10, the 30-day average volume traded.
HDFC AMC stock trades higher than 50, 100 and 200-day moving averages but lower than 5 and 20-day moving averages. Even as the stock has gained 120% on a year-to-date basis, it has fallen 13% in a month and over 8% in 7 days .
Standard Life Investments intends to sell up to 47.50 lakh equity shares, representing 2.23% of the total issued and paid-up equity share capital of HDFC AMC through the offer-for-sale (OFS) mechanism, HDFC AMC said in a filing.
The company will offer its shares at a floor price of Rs 3,170 per equity share. There will be an option to additionally sell up to 38.5 lakh equity shares, amounting to 1.81% stake, the filing added.
Institutional investors can participate in the OFS on Wednesday, while retail investors can bid for the issue on Thursday.
Around 25% of the shares of total issue size will be reserved for mutual funds and 10% for retail investors.
The share sale is being undertaken for achieving the minimum 25% public shareholding in the company, as prescribed under the norms by the market regulator SEBI. As of September 2019, HDFC held 82.70% stake, of which Standard Life Investments' shareholding stood at 29.94%. Post the OFS, promoter shareholding will fall around 80%.
The share price of HDFC AMC closed at Rs 3,329 on the BSE, declining 3.26% against the previous close of Rs 3,441.45.