HDFC AMC files IPO papers with Sebi

HDFC AMC (Asset Management Company), a subsidiary of mortgage lender HDFC filed a draft red herring prospectus on Thursday for initial public offer with capital market regulator Sebi. Mortgage lender HDFC will sell over 4 per cent stake in its asset management arm HDFC AMC through the initial public offer (IPO).

The Committee of Directors set up by the HDFC board has approved offering up to 85,92,970 equity shares of Rs 5 each of HDFC AMC, representing 4.08 per cent of the paid-up share capital, for sale in the IPO. 1,68,64,585 equity shares by Standard Life Investments  will  also be available for sale.

HDFC owns 57.34% in the venture while Standard Life owns 38.24% and remaining is with others.  

Last November, the Housing Development Finance Corporation cleared the IPO of HDFC Asset Management Company Ltd (HDFC AMC).

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 per cent in the AMC arm.

HDFC AMC had earned total revenues of Rs 1,588 crore last fiscal ended March 2017, while its net profit was at Rs 550 crore.

HDFC said HDFC AMC will continue to be its subsidiary post-IPO.

The IPO includes the following proposed reservations.

Up to 3,20,000 equity shares for purchase by eligible employees.

Up to 5,60,000 equity shares for purchase by eligible HDFC employees.

Up to 24 lakh equity shares for purchase by individual and HUF shareholders of the corporation on date of filing draft red herring prospectus (March 14).

Up to 7,20, 000 equity shares in favour of empanelled distribution partners of HDFC AMC in India.