HDFC Mutual Fund books ₹905 crore profit in Persistent Systems

The sale cut HDFC AMC’s stake in the $5 billion Pune-based IT firm to 3.06%. The country’s top fund managers held over 23.5% in Persistent Systems via 35 different schemes as of the end of June.

Mutual funds have increased their net aggregate holding in Persistent Systems over the past year. Since 13 October 2022, the company’s share price has swelled by 39% from a 52-week low of Rs. 3,502 to Rs. 5,775, so there could be more profit-booking by investors in the coming weeks. Persistent Systems has been a top pick among fund managers over the past few years and has yielded regular profits.

At present, the Kotak Emerging Equity scheme holds 4.36% in Persistent Systems, while Axis Mutual Fund, Motilal Oswal Flexi Cap Fund, Nippon Life India Trustee Ltd, and HSBC Small Cap Fund hold 3.42%, 2.32%, 1.45% and 1.20%, respectively.

In December 2021, HDFC AMC had booked a similar profit by selling a 2.06% stake in the firm, reducing its overall holding to 5.14%. The fund house had increased its stake in the company by 2.03% in December 2019.

HDFC AMC, which managed at least Rs. 5.2 trillion in assets as of the end of June and has a 11.2% market share, reported a 20% year-on-year jump in net profit to ₹436.5 crore for the September quarter.

On 28 September, HDFC AMC raised its stake in India’s biggest winemaker Sula Vineyards by 2.01% to 8.56%.

The fund house recently received the Reserve Bank of India’s (RBI’s) approval to raise its stake in five private lenders — Karur Vysya Bank Ltd, DCB Bank Ltd, Equitas Small Finance Bank Ltd, Federal Bank Ltd, and City Union Bank – to 9.5%. Current rules restrict a single MF scheme’s shareholding in a listed firm to 10%.

Shares of Persistent Systems closed marginally up at ₹5,771.45 on the NSE on Thursday.

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Updated: 12 Oct 2023, 05:53 PM IST