Mumbai: The initial public offering (IPO) of HDFC Asset Management Co. Ltd (HDFC AMC) witnessed a subscription of 5.52 times on Thursday, the second day of the offering, with strong demand from investors across all categories.
The public offering closes on 27 July. On Wednesday, the IPO was subscribed 1.03 times.
According to data from stock exchanges, by 5pm on Thursday, the portion of shares reserved for institutional investors was subscribed 5.89 times, while the portions reserved for retail investors and high net-worth individuals were subscribed 3.5 times and 13.91 times respectively.
The asset manager is selling its shares in a price band of ₹1,095-1,100 per share.
The IPO is a pure offer for sale wherein existing shareholders HDFC Group and Standard Life Investments are selling shares worth ₹2,800 crore in the IPO. HDFC is selling a 4% stake in the company, while Standard Life Investments is selling 8%. At the upper end of the price band, the asset manager is valued at ₹23,319 crore.
On Tuesday, the asset manager raised ₹731.8 crore from institutional investors as part of its anchor book allocation, a day ahead of its IPO. The anchor book allocation saw participation of foreign institutional investors such as Smallcap World Fund, Abu Dhabi Investment Authority, Goldman Sachs (Singapore) and others.
Domestic institutional investors that participated in the anchor book allotment included mutual funds from ICICI Prudential, Axis Mutual Fund, SBI Mutual Fund and L&T Mutual Fund among others. Shares were allocated to anchor investors at a price of ₹1,100 each.
As of 31 March, HDFC AMC’s assets under management stood at ₹2.91 trillion, of which equity-oriented AUM and non-equity-oriented AUM constituted ₹1.49 trillion and ₹1.42 trillion, respectively.
Last year, HDFC Standard Life Insurance Co. Ltd went public in an IPO that saw shareholders HDFC and Standard Life sell shares worth ₹8,695 crore to the public. The insurance company was valued at ₹58,277 crore at the time of the IPO.