Why HDFC AMC, Karur Vyasya, DCB Bank Shares Are In Focus Today As Volume Spurts?

The Reserve Bank of India (RBI) has given approval to HDFC Asset Management Company (AMC) to acquire up to 9.5% stake each in DCB Bank and Karur Vysya Bank. It is important to note that Apex Bank's approval will remain valid for one year from the date of approval, said both lenders in the BSE filing.

Meanwhile, HDFC AMC shares declined 0.25% on BSE on Thursday. HDFC AMC shares witnessed spurt in volume by more than 1.43 times. HDFC AMC shares soared 52% in last 6-months and rallied 38% in last 1-year.

Meanwhile, Karur Vysya Bank shares soared 1.23% in morning trade. Current market price of Karur Vysya Bank share is Rs 135.40 per share. Karur Vysya stock soared 5% in last 1-week and again 5% in last 2-weeks.

Karur Vysya Bank stock rallied 38% in last 6-months and soared 54% in last 1-year.

According to the BSE filing of Karuru Vyasya dated September 20, "Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advised that the Reserve Bank of India ("RBI") vide its letter dated September 20, 2023, has accorded its approval to HDFC Asset Management Company Ltd. (HDFC AMC) for acquiring aggregate holding of up to 9.5% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd. The approval has been granted with reference to the application made by HDFC AMC to RBI."

On the other hand, DCB Bank soared 4.11% on BSE and there is spurt in volume by more than 1.15 times. Current market price of DCB Bank Limited is Rs 129.15 apiece on BSE. DCB Bank shares gained 9% in last 1-week and soared 11% in last 2-years.

As per the regulatory filing of DCB Bank dated September 20, "Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that the Bank has received an intimation from RBI on September 20, 2023, that it has accorded its approval to HDFC Asset Management Company Limited ("AMC") to acquire aggregate holding of up to 9.5% of the paid-up share capital or voting rights of the Bank."

AMC has been advised by the RBI to acquire the aforesaid major shareholding in the Bank within a period of one year from the date of approval. If AMC fails to acquire major shareholding within stipulated period, the approval granted by the RBI shall stand cancelled. Further, AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times.