HDFC AMC jumps 2% on investing Rs 25 crore more in subsidiary

Shares of HDFC Asset Management Company jumped more than 2 percent in early trade on September 26 after it made additional investments in a subsidiary.

At 10:35am, the HDFC AMC stock was trading 1.90 percent higher at Rs 2721.85 on NSE.

HDFC Asset Management Company (HDFC AMC) has invested Rs 25 crore in HDFC AMC International and continues to hold 100 percent stake in the arm. The entity being acquired belongs to financial and advisory services, as per a BSE filing of September 25.

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The objective of the acquisition as per the filing is to enable the wholly owned subsidiary (WOS) to meet the net worth requirements prescribed for registered fund management Entity (Retail) under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, to provide seed capital, if required, in certain funds to be set up by WOS in Gujarat International Finance Tec-City (‘GIFT’) IFSC and to meet the operating and administrative expenses of the WOS, from time to time.

Recent developments in HDFC AMC

The Reserve Bank of India (RBI) has allowed HDFC Asset Management Company (AMC) to acquire up to 9.5 percent stake each in the DCB Bank and Karur Vysya Bank. The approval is valid for one year, both the lender said in an exchange filing. The central bank also told HDFC AMC that its shareholding in both the private banks should not exceed 9.5 percent.

Also Read: RBI allows HDFC AMC to buy stake in DCB, Karur Vysya Bank

Stock Performance

The HDFC AMC stock has given a return of 61.67 percent over the last six months. The benchmark Nifty50 index has given a return of 15.81 percent over the same duration.

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