HDFC to sell 4% in mutual fund arm through Initial Public Offer
, ET Bureau|
Updated: Mar 13, 2018, 09.45 PM IST
MUMBAI: Housing Development Finance Corp. and Standard Life will raise Rs 3,600 crore by selling 12% stake in HDFC AMC through initial public offering in May, valuing the company at around Rs 30,000 crore.
HDFC owns 57.34% in the venture while Standard Life owns 38.24% and remaining is with others. The committee of directors set up by the HDFC board has approved offering up to 8,592,970 equity shares of HDFC AMC at Rs 5 each, representing 4.08% stake said HDFC in a regulatory filing. Post dilution, HDFC would like to hold shareholding of around 50%.
“HDFC will sell 4%, Standard Life 8% ,” said Keki Mistry vice chairman HDFC.
In November 2017, HDFC board had approved the IPO of the mutual fund arm. The HDFC board had approved to offer part of its shares held in HDFC AMC to the public in one or more tranches so that its holding remains at least 50.01% in the AMC arm, the company said in the filing.
“HDFC will come up with the IPO in the second week of May,” said a source close to the development. “As per the initial estimates, the company could be valued at around Rs 28,000 to Rs 30,000 crore,”
In the first nine months ended December 31, 2017, the company had earned revenue of Rs 497.88 crore. It reported a profit of Rs 267 crore in the period.
In November 2017, HDFC listed its life insurance company and raised Rs 8,695 crore through initial public offering.
This will make HDFC, the second asset management company to list on the exchange after Reliance Nippon Life Asset Management. The company has market capital of Rs 15,755 crore.
Shares of HDFC was closed 0.45% up to Rs 1,863.25 on the Bombay Stock Exchange.
HDFC owns 57.34% in the venture while Standard Life owns 38.24% and remaining is with others. The committee of directors set up by the HDFC board has approved offering up to 8,592,970 equity shares of HDFC AMC at Rs 5 each, representing 4.08% stake said HDFC in a regulatory filing. Post dilution, HDFC would like to hold shareholding of around 50%.
“HDFC will sell 4%, Standard Life 8% ,” said Keki Mistry vice chairman HDFC.
In November 2017, HDFC board had approved the IPO of the mutual fund arm. The HDFC board had approved to offer part of its shares held in HDFC AMC to the public in one or more tranches so that its holding remains at least 50.01% in the AMC arm, the company said in the filing.
“HDFC will come up with the IPO in the second week of May,” said a source close to the development. “As per the initial estimates, the company could be valued at around Rs 28,000 to Rs 30,000 crore,”
In the first nine months ended December 31, 2017, the company had earned revenue of Rs 497.88 crore. It reported a profit of Rs 267 crore in the period.
In November 2017, HDFC listed its life insurance company and raised Rs 8,695 crore through initial public offering.
This will make HDFC, the second asset management company to list on the exchange after Reliance Nippon Life Asset Management. The company has market capital of Rs 15,755 crore.
Shares of HDFC was closed 0.45% up to Rs 1,863.25 on the Bombay Stock Exchange.