HDFC AMC , one of India's largest mutual fund houses, has announced plans for a 1:1 bonus share issue, subject to shareholder approval. The company's board of directors approved the proposal on October 15, 2025, aiming to reward shareholders and enhance stock liquidity.

Key Details of the Bonus Issue

• Ratio: One bonus equity share for every existing fully paid-up equity share held
• Record Date: November 26, 2025
• Face Value: ₹5 per share
• Funding: To be capitalized from Capital Redemption Reserve Account and Securities Premium Account

Financial Implications

The bonus issue will be funded by capitalizing:

• ₹52.41 crores from Capital Redemption Reserve Account
• Up to ₹65.00 crores from Securities Premium Account

Voting Process

Company Performance

As of September 30, 2025, HDFC AMC reported:

• Assets Under Management (AUM): ₹8,73,000.00 crores
• Unique Investors: 1.45 crore
• Live Accounts: 2.60 crore

Implications for Shareholders

1. Increased Shareholding: Existing shareholders will see their number of shares double, without any additional cost.
2. Enhanced Liquidity: The bonus issue aims to make shares more affordable, potentially increasing trading volume.
3. No Dilution: As no new capital is raised, there's no dilution in ownership percentage.

Important Notes for Shareholders

• Bonus shares will be allotted only in dematerialized form.
• Physical shareholders must provide demat account details by November 24, 2025.
• The issue is subject to regulatory approvals and must be implemented within two months from the board meeting date.

Market Impact

While the bonus issue doesn't directly affect the company's fundamentals, it may lead to increased investor interest. The move reflects HDFC AMC's confidence in its financial position and growth prospects.

HDFC AMC continues to be a significant player in India's mutual fund industry, with a distribution network of over 1,03,000 partners and a pan-India presence through 280 offices. The company's digital platforms further enhance accessibility for investors across the country.

As shareholders prepare to vote on this corporate action, they should consider the potential benefits of increased liquidity and the company's strong market position in the asset management sector.

HDFC Asset Management Company (HDFC AMC), one of India's leading mutual fund managers, has released its Employee Stock Option Plan (ESOP) expense guidance and operating cost projections for the coming years. The announcement comes as part of the company's efforts to provide transparency to investors and align employee incentives with long-term growth objectives.

ESOP Expense Projections

HDFC AMC has provided a detailed breakdown of its anticipated ESOP expenses for the next few fiscal years:

This gradual reduction in ESOP expenses over time suggests a strategic approach to employee compensation and retention.

Operating Cost and Margin Targets

The asset management company has set clear targets for its operational efficiency:

• Annual operating cost increase: 12-15%
• Target operating margin: 33-35 basis points

These projections indicate HDFC AMC's commitment to maintaining a balance between growth and profitability.

Total Expense Ratio Outlook

HDFC AMC anticipates a steady decrease in its Total Expense Ratio (TER) in the future. This trend could potentially benefit investors by reducing the overall cost of fund management.

Recent Financial Performance

The company's financial results for Q2 FY26 showcase its strong market position:

• Quarterly Average Assets Under Management (QAAUM): ₹8,814.00 billion
• Market share: 11.4% of the mutual fund industry's QAAUM
• Revenue from operations: ₹10,260.00 million (16% YoY growth)
• Operating profit: ₹7,796.00 million (13% YoY growth)
• Profit After Tax (PAT): ₹7,179.00 million (24% YoY growth)

Strategic Initiatives

HDFC AMC continues to focus on expanding its reach and enhancing shareholder value:

1. Bonus Share Issuance: The Board of Directors has approved a 1:1 bonus share issuance, subject to shareholder approval.
2. ESOP and PSU Grants: The company granted 19,730 Employee Stock Options and 7,570 Performance-linked Stock Units to eligible employees, aligning their interests with the company's long-term performance.

Market Position

HDFC AMC maintains a strong presence in the asset management industry:

• Leading position in actively managed equity-oriented funds with a 12.9% market share
• 13.1% market share of individual monthly average AUM
• Extensive distribution network with over 103,000 empaneled partners

Navneet Munot, Managing Director & Chief Executive Officer of HDFC AMC, stated, "Our focus remains on delivering value to our investors while maintaining operational efficiency. The ESOP expense guidance and operating cost projections reflect our commitment to transparency and sustainable growth."

As HDFC AMC navigates the evolving landscape of the asset management industry, its strategic initiatives and financial discipline position the company to capitalize on India's growing investment market while managing costs effectively.