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Shares of HDFC Asset Management Co Ltd. (HDFC AMC) jumped as much as 4.6 percent in intra-day trade on Wednesday after the company announced that one of its promoters plans to sell its entire stake in the firm.

HDFC AMC said that global investment company and asset manager abrdn Investment Management Ltd. intends to sell its entire 10.21 percent stake in the company.

Consequent to the proposed stake sale, abrdn Investment Management will cease to be a co-sponsor of HDFC Mutual Fund, it added.

Meanwhile, abrdn Investment Management said in its communication with HDFC AMC that it intended to place up to a 9.9 percent stake with a single buyer, with the remaining 0.31 percent to be sold separately.

Following the development, capital markets firm Jefferies recommended a ‘buy’ on the HDFC AMC with a target price of Rs 2,450 per share.

Jefferies said that, as per the regulatory norms for mutual funds, HDFC AMC would be seeking the Securities and Exchange Board of India’s (SEBI) approval for the stake sale by the co-promoter and it may also need to seek approval from unitholders unless exempted.

The stock counter also saw a spurt in trading volume, with the number of shares changing hands rising by more than 4.14 times.

Shares of HDFC AMC are trading at Rs 2,287 apiece, up 4.33 percent.

(Edited by : Rukmani Krishna)