Home / News / India /  HDFC AMC offer for sale subscribed 2.6 times on day one

MUMBAI: The offer for sale (OFS) of HDFC Asset Management Company Ltd (HDFC AMC) shares by Standard Life Investment was subscribed 2.6 times on Wednesday, according to data from the stock exchanges.

Standard Life Investment, one of the two promoters of HDFC AMC, has offered selling 60 lakh shares, or 2.82% stake, through OFS. The floor price for OFS was set at 2,362 each, a 6.92% discount to Tuesday's closing price of 2,537.65.

Today, shares of HDFC AMC fell 4.85% to close at Rs2,414.5 on the BSE.

The offer for sale opened for subscription by non-retail investors today, with 5.4 million shares put on the block, of which bids were received for 14.1 million.

Retail investors can subscribe to the OFS on Thursday.

In case of oversubscription, Standard Life has proposed selling another 60 lakh equity shares. In total, Standard Life plans selling 1.2 crore shares of HDFC AMC, representing 5.64% of total paid-up capital of the company.

As per the base offer, the company has set aside 6 lakh shares for retail investors and 54 lakh shares for the non-retail ones. If oversubscribed, the allocation for each category will double, that is 12 lakh shares for retail investors and 1.08 crore shares of non-retail.

As of 31 March, Standard Life Investments held 26.89% stake in HDFC AMC, while HDFC Ltd owned 52.72%.

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