The HDFC AMC IPO will put up to 2.54 crore equity shares of the fund house on sale, of which 85.92 lakh shares will be put up by HDFC and up to 1.68 crore shares by Standard Life
New Delhi: HDFC Asset Management Company, the country's second largest mutual fund firm, has fixed a price band of ₹ 1,095-1,100 per share for its initial public offering, through which it is estimated to garner Rs2,800 crore.
The initial share sale offer will be open for public subscription from 25 to 27 July , HDFC said in a regulatory filing to stock exchanges.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.
Going by the draft papers files, the proposed initial public offer (IPO) will put up to 2.54 crore equity shares of the fund house on sale, of which 85.92 lakh shares will be put up by HDFC and up to 1.68 crore shares by Standard Life. HDFC AMC is selling a 4.08% stake in the IPO, while Standard Life will offload 7.95%.
"The price band for the IPO has been fixed at ₹ 1,095-1,100 per equity share of face value ₹ 5 each of HDFC AMC and that the minimum bid lot for the IPO has been fixed at 13 equity shares and applications may be made in multiples of 13 equity shares thereafter," HDFC said.
At the upper end of the price band, the issue is expected to garner ₹ 2,800 crore.
HDFC AMC, which had total assets under management of over ₹ 3 lakh crore at the end of March, is the country's second largest fund house after ICICI Prudential AMC, which had an asset base of ₹ 3.06 lakh crore.
It will become the second AMC to hit the markets after Reliance Nippon Life AMC, which had raised ₹ 1,542 crore last year. Nomura Financial Advisory and Securities (India), Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley India are the book-running lead managers to the issue.
Markets regulator Sebi had last month given clearance to the fund house to float its IPO after keeping it on hold. Sebi had asked HDFC AMC to cancel shares allotted to distributors and advisers. It had directed the fund house to return the money it had collected from distributors and independent financial advisers, at the rate of 12%, according to industry insiders.
The fund house had made a private placement of shares to the tune of ₹ 150 crore to 140 distributors in April. These shares were offered at ₹ 1,050 per share. Though it had offered stocks to nearly 200 distributors, only 140 subscribed, they added.
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