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Tuesday
Apr 24 2001
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0013 hrs IST
1343 EST
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Standard Life picks up 26% in HDFC-AMC
Yassir A Pitalwalla
MUMBAI
IT'S the largest deal of its kind. In a first for the Indian mutual fund industry, Standard Life Assurance of the UK has acquired a 26 per cent stake in HDFC Asset Management Company at a valuation of Rs 215.38 crore.
Apart from being the highest valuation ever paid for any mutual fund in India, this is also the largest amount ever paid for a MF which has been less than a year in operation (the mutual fund launched its first scheme in August 2000).
Confirming the development, HDFC AMC managing director Milind Barve told the Economictimes.Com, "SLAC has acquired the 26 per cent stake at a price of Rs 56 crore from the Housing Development & Finance Corporation."
This puts the valuation of the company in excess of Rs 215 crore. The UK-based insurance and financial services major acquired 52 lakh shares of the AMC at a price of Rs 107.69 each.
"The stake was acquired on April 17, 2001 in terms of a MoU signed between the two parties earlier last year," said Barve.
The AMC currently has a paid up equity capital of Rs 20 crore which will remain the same after the stake acquisition. SLAC Group managing director Scott Bell is already represented on the board of directors of the AMC.
HDFC is represented on the eight member board of the AMC by its three nominees -- Barve, HDFC executive director Renu Karnad and HDFC chairman Deepak Parekh.
After SLAC's stake acquisition in the MF, HDFC's stake in the venture stands reduced to 74 per cent from 100 per cent.
The MF is already retailed as HDFC MF in association with Standard Life Investments which is an arm of the SLAC-UK. The AMC currently manages an total of six schemes totalling assets of Rs 1,530 crore.
In addition to that, HDFC AMC also manages $33 million of FII money of Standard Life Investments.
The AMC has also been advising HDFC-Standard Life Insurance on investment of its capital and premia after it sought and received a portfolio management service license from the Securities & Exchange Board of India.
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