Mumbai: Shares of HDFC Asset Management Co. Ltd jumped more than 65% on the bourses on Monday, after the asset manager’s 2,800 crore initial public offer (IPO) was subscribed more than 83 times last month, with investors lapping up the stock on the back of brand value. HDFC AMC shares opened 58.09% higher on the BSE at 1739 a piece , compared to the issue price of 1,100 , which was the upper end of the price band between 1,095-1,100 per share.

In intraday trade, the stock gained as much as 66.55% to hit a high of 1,832 a share. At 10.06am, the scrip was trading at 1819 on BSE, up 65.36% from its issue price.

Earlier in the day, BSE’s 30-share Sensex rose as much as 0.66% to fresh record of 37805.25 points, while National Stock Exchange’s 50-share Nifty climbed as much as 0.59% to new high of 11427.65 points.

HDFC AMC, the second-largest asset manager in the country, is a joint venture between mortgage lender Housing Development Finance Corp. Ltd (HDFC) and Standard Life Investments Ltd. The IPO valued the company at 23,319 crore.

Its AUM has grown at a CAGR of 25.5% between 31 March, 2013 and 31 March, 2018 to 2.92 trillion. Its proportion of equity-oriented AUM to total AUM was at 51.3% at the end of FY18, higher than the industry average of 43.2%. It has a wide distribution network, with 209 branches and more than 65,000 distributors, and increasing dividend payouts.

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