Shares of HDFC Asset Management Company or HDFC AMC are expected to list on exchanges next week. According to a communication from ICICI Securities, HDFC AMC IPO is likely to get listed on 6 August, adding that the share allotment process of IPO of HDFC AMC is now completed. Karvy Computershare Pvt. Ltd. Is the registrar of the issue. Shares of HDFC AMC will get listed on both NSE and BSE. HDFC AMC IPO is likely to make a strong debut on stock exchanges. According to a newspaper report, grey market operators expect shares of HDFC MF to list with gains of around 40%.
The issue price of HDFC AMC IPO has been fixed at ₹ 1,100. The ₹ 2,800 crore IPO of HDFC AMC saw a huge demand, with the offer subscribed 83 times. HDFC AMC IPO was open between 25 July and 27 July and HDFC AMC had offered 25.46 million shares in a price band of ₹ 1,095-1,110 apiece. The qualified institutional buyers (QIBs) segment was subscribed 192 times, non-institutional investors 195 times and retail investors 6.6 times. HDFC AMC shares will get listed on both BSE and NSE.
Those who had applied for HDFC AMC IPO can check the allotment status when it shows up at Karvy Computershare’s website, BSE website or their demat accounts once the shares are allotted.
Many brokerages were optimistic on HDFC AMC IPO, citing strong parentage (HDFC group company), market leadership and strong growth. They were also optimistic about the strong growth potential in the Indian mutual fund sector. They also cited strong return ratios and higher dividend payout ratio in HDFC AMC’s favour.
HDFC AMC is a joint venture between mortgage lender Housing Development Finance Corporation (HDFC) and Standard Life Investments. HDFC AMC is the second biggest fund house in the country, with AUM or assets under management of ₹ 2.91 trillion, as of 31 March 2018. It accounted for 13.7% of the total industry and 16.8% of actively managed equity-oriented AUM. Equity-oriented schemes generally have a higher fee structure.
Last year, HDFC AMC’s rival Reliance Nippon Life Asset Management Ltd raised ₹ 1,542 crore in an IPO.