The acquisition of 24,90,939 equity shares of Rs10 each of HDFC Asset Management Company Ltd (HDFC AMC) has cost the housing financier Rs181.81 crore. With this acquisition, HDFC''s shareholding in HDFC AMC would increase to 60 per cent of its paid-up equity capital. Standard Life Investments will retain the remaining 40 per cent.

The two companies are the co-sponsors of HDFC Mutual Fund. HDFC AMC is the investment manager to HDFC Mutual Fund with funds under management of Rs41,333 crore as of 30 September 2007. HDFC Mutual Fund is the third largest private sector mutual fund with equity assets constituting approximately 44 per cent of the total funds under management.

In addition, HDFC AMC also provides portfolio management and advisory services to domestic and offshore clients with funds under management of approximately Rs11,434 crore as of 30 September 2007, making the total assets under management of Rs52,767 crores.

HDFC Mutual Fund commenced business in July 2000 and has been one of the fastest growing AMCs. It presents a basket of around 31 schemes comprising equity funds, hybrid funds and debt funds. A large number of HDFC Mutual Fund products have been accorded recognition for its investment performance over the years. HDFC AMC is the only AMC in the country to be awarded level 1 rating on "Corporate Governance and Process Quality" by CRISIL.