HDFC Mutual Fund has picked up close to 5% stake in Chennai-based Carborundum Universal Ltd (CUMI), a part of the Rs 9,500-crore Murugappa group.

According to sources, it has been observed that the fund house has acquired 4.5% stake in the company from Mauritius-based FID Fund, which offloaded its stake in the company few days back.

HDFC MF, through its various funds, has picked up over 46.30 lakh shares in a single deal (4.96% stake).

Carborundum Universal Limited, through its subsidiaries, provides industrial ceramic material-based products and services. It operates in five segments: Abrasives, Ceramics, Electrominerals, IT Services, and Power. It has operations in India, the United States, Australia, Canada, and the Middle East.

Recently, Carborundum Universal has reported earning results for the quarter ended March 2008. During the quarter, the profit of the company jumped 42.24% to Rs 24.75 crore from Rs 17.40 crore in the same quarter last year.