Country's second-largest mutual fund firm by assets HDFC MF has received market regulator Securities and Exchange Board of India's (Sebi) clearance for its initial public offer. The IPO is likely to be launched in second or third week of July, according to media reports.
The fund house had filed preliminary papers with Sebi in March, seeking approval to float an initial public offering.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.
Going by the draft papers, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life Investments.
The offer comprises a net offer to public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees. Besides, 24 lakh shares have been reserved for eligible HDFC shareholders.
Nomura Financial Advisory and Securities (India), Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley India have been appointed to manage the company's public issue.
Earlier this year, the IPO of the brokerage firm ICICI Securities, part of ICICI group was held between March 22 to March 26 in a price band of Rs 519-520.
The share sale of the leading brokerage firm, which was to raise up to Rs 4,016 crore, received around 88 per cent subscription, including the anchor portion, on the last day. ICICI Securities had to cut the size of its initial public offer to little over Rs 3,500 crore after the sale elicited a sluggish response, especially from high networth individuals.