Adani investor GQG Partners offloads part stake in HDFC AMC in open market transaction

US-based GQG Partners, which has invested in the crisis-ridden Adani group, has sold its part stake in HDFC Asset Management Company (AMC) through open market transactions on Monday.

GQG Partners has sold about 24.7 lakh shares or 1.16% equity in the company for nearly Rs 397 crore. The deal was executed at an average weighted price of rs 1,600.85 per equity share, according to bulk deal data.

As of December quarter, the emerging market fund of GQG Partners held 2.28% stake in HDFC AMC.

Meanwhile, SBI Mutual Fund has bought into the company by lapping up 47.3 lakh shares or 2.2% equity through the open market.

Promoters and promoter group own majority of HDFC AMC with 62.78% stake, while public shareholders have about 37.22% equity in the company. Promoter HDFC owns 52.6% stake and abrdn Investment Management has 16.2% stake in the company

Among the public shareholders, while mutual funds own 3.07%, foreign investors hold a combined 22%.

Shares of HDFC AMC closed 0.17% higher on Monday at Rs 1,681 apiece on NSE. The stock hit a fresh 52-week low intraday. The shares have remained under pressure so far in 2023, losing as much as 23% on a year-to-date basis.

HDFC AMC is one of the leading asset management companies in India with total Assets Under Management (AUM) over Rs 4 lakh crore.

As of December 31, 2022, 66% of the company’s total monthly average AUM is contributed by individual investors compared to 58% for the industry.

In the latest December quarter, HDFC AMC reported 3% year-on-year rise in net profit at Rs 369 crore. The HDFC Group company's revenue from operations in Q3 rose 2% YoY to Rs 559.6 crore.

During the quarter, the company's operating profit from core asset management business was flat at Rs 397.4 crore.

It had a quarterly average AUM market share of 11%, while the ratio of equity oriented AUM and non-equity oriented closing AUM is at 55:45, compared to the industry ratio of 50:50.

According to trendlyne data, HDFC AMC has an average target price of Rs 2,272, which shows an upside of 35% from the current share price levels.