HDFC AMC IPO gets 103% subscription on day 1

The mutual fund firm's Rs 2,800-crore public offer received bids for 1,93,96,884 shares against the total issue size of 1,88,04,290 shares, translating into 1.03 times subscription, as per NSE data.

By BusinessToday.In  
Thursday, July 26, 2018

The initial public offer (IPO) of HDFC Asset Management Company (AMC), country's second-largest mutual fund firm, was fully subscribed on the first day of bidding, following robust demand from investors yesterday.

The mutual fund firm's Rs 2,800-crore public offer received bids for 1,93,96,884 shares against the total issue size of 1,88,04,290 shares, translating into 1.03 times subscription, as per NSE data.

The category reserved for qualified institutional buyers (QIB) was subscribed 1.19 times, non institutional investors 55 per cent and retail investors 1.34 times.

The IPO is available at a price band of Rs 1,095 to 1,100 per share. The issue size comprises 2.5 crore equity shares which includes 8,59,2,970 (4.08 per cent stake) equity shares by HDFC Ltd and 16,864,585 (7.95 per cent stake) equity shares by Standard Life Investments.

Post-issue, excluding reserved portion for employees and shareholders, HDFC's shareholding will come down to 52.92 per cent from 56.97, while that of Standard Life will be down from 37.98 to 30.03 per cent. HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

The IPO will close on July 27, 2018. Shares can be bid in lots of 13 equity shares and multiples thereof. The fund house had filed preliminary papers with Sebi in March, seeking its approval to float an IPO.

Ahead of the share sale, HDFC Asset Management Company garnered Rs 732 from anchor investors July 24. The company's IPO committee finalised allocation of 66,53,265 equity shares to 35 anchor investors at Rs 1,100 per scrip, the firm said. At this price, the total proceeds will be Rs 731.86 crore.

Camas Investments, Reliance Strategic Investments, Goldman Sachs (Singapore), Abu Dhabi Investment Authority - Relval, FIL Investments (Mauritius), HSBC Indian Equity Mother Fund, SBI Large and Mid Cap Fund, Kotak Emerging Equity Scheme and Smallcap World Fund, Inc  were among the anchor investors.

HDFC AMC, which has a total asset under management of over Rs 3 lakh crore as of March-end, is the country's second largest fund house after ICICI Prudential AMC that has an asset base of Rs 3.06 lakh crore during the same period.

Written and edited by Aseem Thapliyal

Related Stories

Adani Gas share price rises nearly 7% amid report French firm Total close to acquire 30% stake for over Rs 5,500 crore
Adani Gas share price rises nearly 7% amid report French firm Total close to acquire 30% stake for over Rs 5,500 crore
Hexaware Technologies acquires US firm Mobiquity, share price rises after three days
Hexaware Technologies acquires US firm Mobiquity, share price rises after three days
Jet Airways share price slumps over 23% on report NSE to remove stock from F&O trading from June 28
Jet Airways share price slumps over 23% on report NSE to remove stock from F&O trading from June 28

Latest Stories

PM Modi has courage to construct Ram temple: Shiv Sena chief Uddhav Thackeray
PM Modi has courage to construct Ram temple: Shiv Sena chief Uddhav Thackeray
Noose tightens on Swiss account holders; Details of at least 50 Indians being shared
Noose tightens on Swiss account holders; Details of at least 50 Indians being shared
BHU Results 2019: Banaras Hindu University announces UET, PET entrance results; check score on bhuonline.in
BHU Results 2019: Banaras Hindu University announces UET, PET entrance results; check score on bhuonline.in
SPONSORED