HDFC Asset Management Company or HDFC AMC has finalised the offer price of the IPO at ₹ 1,100 per share. HDFC AMC’s IPO, which attracted strong demand, was open between 25 July and 27 July. HDFC AMC had offered 25.46 million shares in a price band of ₹ 1,095-1,110 apiece. The offer was subscribed 83 times. Among the different segments, the category set aside for qualified institutional buyers (QIBs) was subscribed 192 times, non-institutional investors 195 times and retail investors 6.6 times.
HDFC AMC raised ₹ 2,800 crore through the IPO which consisted of sale of 25.46 million shares. Karvy Computershare Pvt. Ltd. Is the registrar of the issue.
Indicative HDFC AMC IPO timeline, according to Choice Broking, which had a subscribe rating to the issue:
Finalization of basis of allotment: 1 August 2018
Unblocking of ASBA account: 2 August 2018
Credit to demat accounts: 3 August 2018
Listing on stock exchanges: 6 August 2018
Many brokerages were optimistic on HDFC AMC IPO, underscoring the strong growth potential in the Indian mutual fund sector that has seen assets doubling in three years. Analysts said HDFC AMC, which is the most profitable AMC in the country, also stands out among its peers with its higher share of equity assets and focus on the retail segment.
As on 31 March 2018, HDFC AMC had a total AUM or assets under management of ₹ 2.91 trillion, accounting for 13.7% of the total industry and 16.8% of actively managed equity-oriented AUM.
HDFC AMC is a joint venture between mortgage lender Housing Development Finance Corporation (HDFC) and Standard Life Investments. The fund house’s two biggest shareholders - mortgage lender Housing Development Finance Corp Ltd and Standard Life – sold 12% stake in the IPO.
Last year, HDFC AMC’s rival Reliance Nippon Life Asset Management Ltd raised ₹ 1,542 crore in an IPO. Kotak Investment Banking, Axis Capital, Bank of America Merrill Lynch, Citigroup, CLSA, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JPMorgan, Morgan Stanley and Nomura were the banks managing the HDFC AMC IPO.
Another HDFC group company, HDFC Bank has launched a share sale to raise up to ₹ 15,500 crore, comprising a mix of a qualified institutional placement (QIP) and American depository receipts (ADR). HDFC Bank has fixed a floor price of ₹ 2,179.13 for the QIP. Only domestic institutional investors will participate in the QIP. HDFC Bank shares had ended 1.4% lower at ₹ 2172.25.
With Agency Inputs