HDFC AMC Secures RBI NOD for Stake Acquisition in Karur Vysya & DCB Banks
The Reserve Bank of India (RBI) has given the green signal to HDFC Asset Management Company (AMC) for the acquisition of up to 9.5% stakes in DCB Bank and Karur Vysya Bank, subject to certain conditions.
Karur Vysya Bank, in a regulatory filing, stated, “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advise that the Reserve Bank of India, in its letter dated September 20, 2023, has granted approval to HDFC Asset Management Company Ltd. (HDFC AMC) for acquiring an aggregate holding of up to 9.5% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd.”
HDFC AMC is required to ensure that its aggregate holding in the bank remains at or below 9.5% of the paid-up share capital or voting rights at all times. Additionally, if the aggregate holding falls below 5%, prior approval from the RBI will be necessary to increase it to 5% or more of the paid-up share capital or voting rights of the bank, as mentioned in the regulatory filing.
HDFC AMC Secures RBI Nod to Acquire Up to 9.5% Stake in DCB Bank
In a separate filing, DCB Bank also informed the exchanges that the RBI has granted approval to HDFC AMC to acquire up to 9.5% of the paid-up share capital or voting rights of the bank.
DCB Bank stated, “We would like to inform you that the bank has received communication from RBI on September 20, 2023, granting its approval to HDFC Asset Management Company Limited (“AMC”) to acquire an aggregate holding of up to 9.5% of the paid-up share capital or voting rights of the bank.”
The RBI has advised HDFC AMC to acquire the major shareholding in the bank within one year from the approval date. Failure to do so will result in the cancellation of the RBI’s approval. Furthermore, HDFC AMC must ensure that its aggregate holding in the bank does not exceed 9.5% of the paid-up share capital or voting rights at any given time, as stipulated.
HDFC AMC, Karur Vysya Bank, DCB Bank Shares Gain Momentum
As of 10:10 am, Karur Vysya Bank shares have surged by 1.05%. The current market price of Karur Vysya Bank shares stands at ₹135.15 apiece on BSE. Meanwhile, DCB Bank has witnessed a 2.62% rise on BSE, with its current market price at ₹129.15 apiece on BSE. HDFC AMC shares have also shown a significant increase of 1.21% on the BSE, with a current market price of ₹2,717 apiece.
HDFC Asset Management Company Reports Impressive Q1 FY24 Performance
HDFC Asset Management Company has reported a remarkable 52% increase in profit for the first quarter of FY24, with average assets under management growing to ₹4.86 lakh crore. The company serves a mutual fund customer base of 71 lakh individuals, with a total of 122 lakh live accounts.
About HDFC AMC:
HDFC Asset Management Company Limited functions as an investment management enterprise, providing portfolio management and advisory services to a diverse clientele that includes individuals, institutions, trusts, private funds, charitable organizations, and investment companies. Its services are primarily oriented towards serving customers within India.
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