HDFC AMC shares gain 5% after LIC raises stake

Shares of HDFC Asset Management Company (AMC) rose over 5% today after state-run insurance major Life Insurance Corporation of India (LIC) raised its stake in the firm. LIC raised its stake to 7.026 per cent from its earlier 5.005 per cent.

The stock touched an intraday high of Rs 2259.25, gaining 5.29% on BSE. HDFC AMC stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Total 0.43 lakh shares of the firm changed hands amounting to a turnover of Rs 9.47 crore on BSE.

Market cap of the firm rose to Rs 48,035 crore on BSE today. The stock has lost 24.39% in one year and fallen 8.46% since the beginning of this year.

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In a month, the stock has gained 7.43%.

Post the transaction, LIC increased its shareholding to 14,984,224 equity shares or 7.026 per cent stake from 10,674,583 equity shares or 5.005 per cent stake held in HDFC AMC. The deal had been executed as a market purchase, the statement added.

In the December quarter of last fiscal, HDFC Asset Management Company reported a 2.58% fall in December quarter net profit to Rs 359.75 crore from Rs 369.26 crore posted in Q3 FY21. Revenue from operations increased 14% year-on-year to Rs 549.67 crore in Q3 FY22. Profit before tax stood at Rs 485 crore in Q3 FY22, slightly rising from Rs 482.6 crore registered in Q3 FY21.

The company's total Assets Under Management (AUM) rose 7% year-on-year to Rs 406,800 crore as of December 31, 2021. The company said it has 11.6% market share in AUM of the mutual fund industry.