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Informist, Thursday, Apr. 17, 2025

--HDFC AMC: To seek shareholder OK for issue of 2.5 mln shares for employees 

--CONTEXT: Comments by HDFC AMC management at post-earnings analyst call 

--HDFC AMC MD: To allot 2.5 mln shares to employees over time, not in one go 

--HDFC AMC: Will launch more funds outside India via subsidiary 

By Sachi Pandey

MUMBAI – HDFC Asset Management Co. Ltd. on Thursday said it is seeking the board's approval to issue 2.5 million shares for employees under its employee stock option and performance share unit schemes. In a post-earnings call with analysts, the management said it plans to launch these schemes once the final regulatory framework is in place.

The new scheme includes deferred vesting, with 10% of the shares vesting in the first year, 20% in the second, 30% in the third, and 40% in the fourth year. The management believes this structure aligns better with shareholder interests and promotes long-term performance. "New scheme will have deferred vesting... and we are of the opinion that this is better aligned with the interest of our shareholders and reinforces long-term performance," the management said.

The company clarified that it does not plan to allot the entire 2.5 million shares at once and will distribute them over time. "It will be spread over time, similar to our old scheme," the management said. 

On the business front, the fund house is looking to expand the schemes internationally and raise capital through its subsidiary HDFCLifeRe - HDFC International Life and Re Company Ltd. - to support this growth.

HDFC AMC is working on developing suitable products to gain market share, particularly in segments that don't necessarily require high complexity to perform well, the management said. 

HDFC AMC Thursday reported an 18% year-on-year increase in net profit for the quarter ended March on robust growth in revenue and assets under management. The fund house's net profit for Jan-Mar was INR 6.39 billion, as revenue from operations rose 30% to INR 9.01 billion.

Shares of HDFC AMC rose after the announcement of the results and closed 2.1% higher at INR 4,218 on the National Stock Exchange.  End

Edited by Saji George Titus

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