Shares of HDFC Asset Management Company (HDFC AMC) surged over 10 percent after a large block trade. At 11:55 am, shares were trading at Rs 2,153, up of 10.09 percent from the previous close on the BSE.

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As many as 1.3 crore shares, or nearly 6 percent stake in the company worth Rs 2,520 crore, changed hands on the BSE at Rs 1,951 apiece, sources told CNBCTV18.

According to sources, ABRDN Investment Management Limited, formerly Standard Life Investments Limited, is likely to have sold 6 percent stake in the block deal.

HDFC AMC Large Trade | 1.3 crore shares (6% equity) worth ₹2,520 crore change hands at ₹1,951/share pic.twitter.com/nsQvMYbqEe

— CNBC-TV18 (@CNBCTV18Live) August 16, 2022On September 29, 2021, Standard Life Investments Limited sold 10.65 million shares of HDFC AMC on the BSE at an average price of Rs 2,873.79 per share. Standard Life Investments held a 21.23 percent stake in the company as of June 30, 2022, as per BSE data.

Sources said multiple domestic funds are likely to have bought into HDFC AMC.

Today's upmove added to the surge in the shares of the asset management company. Shares of HDFC AMC have risen 21.5 percent in the past three months.

Prashant Jain left HDFC AMC last month after 19 years at the firm. He served as chief investment officer (CIO) at the country’s third-largest fund house, overseeing more than Rs 4 trillion in assets.

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In its financial earnings report for the April-June quarter, HDFC AMC reported a 9 percent decline in its profit after tax (PAT). The PAT stood at Rs 314.19 crore as compared to Rs 345.5 crore in the corresponding period last year.

Meanwhile, in June, Kotak Institutional Equities upgraded HDFC AMC to ‘add’ but lowered its target price by Rs 75 to Rs 1,900. The valuation of HDFC AMC makes the risk-reward attractive, according to the brokerage.

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