HDFC AMC , one of India's largest mutual fund houses, has reported strong financial results for the quarter ended September 30, 2025, along with a significant corporate action announcement.

Financial Performance

HDFC AMC witnessed robust growth in its key financial metrics:

The company's profit after tax included a ₹468.00 million reversal of income tax provision from earlier periods.

Assets Under Management (AUM) and Market Share

HDFC AMC's AUM reached ₹8.70 trillion, representing a market share of 11.5%. The company maintains a strong position in actively managed equity-oriented funds:

Investor Base and Distribution

The company serves 14.5 million unique investors, maintaining its leadership among individual investors with a 13.1% market share. HDFC AMC's systematic transactions showed strong momentum, with monthly flows in September 2025 reaching ₹45.10 billion across over 13 million transactions.

New Fund Offerings

During the quarter, HDFC AMC successfully launched two new funds:

1. HDFC Innovation Fund: Collected ₹24.00 billion
2. HDFC Diversified Equity All Cap Active FoF: Collected ₹11.00 billion

Bonus Share Announcement

HDFC AMC's Board of Directors has approved a 1:1 bonus share issue, subject to shareholder approval. This means shareholders will receive one new equity share for each existing share held.

Key points of the bonus issue:

• Record Date: November 26, 2025
• Ratio: 1:1 (One bonus share for every one share held)
• Face Value: ₹5.00 per share
• Funding: To be capitalized from the Capital Redemption Reserve Account and Securities Premium Account

The bonus issue reflects the company's strong financial position and positive growth outlook. It is designed to enhance liquidity and make the shares more affordable for investors.

Management Commentary

Navneet Munot, Managing Director and CEO of HDFC AMC, commented on the results: "We have built a significant franchise over the last 25 years. With our best-in-class product bouquet, long-term performance track record, extensive physical and digital presence, and partnerships with hundreds of thousands of distributors, we see tremendous potential for growth in our industry."

Conclusion

HDFC AMC's strong quarterly performance, coupled with the announcement of a bonus share issue, underscores the company's robust financial health and commitment to shareholder value. As the mutual fund industry in India continues to grow, HDFC AMC appears well-positioned to capitalize on the expanding market opportunities.

Investors and stakeholders will be keenly watching the implementation of the bonus issue and the company's performance in the coming quarters as it navigates the evolving landscape of the asset management industry in India.

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.