HDFC Asset Management Company or HDFC AMC has fixed the issue price of the IPO at Rs 1,100 per share. The Rs 2,800 crore IPO of HDFC AMC saw a huge demand, with the offer subscribed 83 times. HDFC AMC IPO was open between 25 July and 27 July and HDFC AMC had offered 25.46 million shares in a price band of Rs 1,095-1,110 apiece. HDFC AMC IPO is likely to get listed next week. The qualified institutional buyers (QIBs) segment was subscribed 192 times, non-institutional investors 195 times and retail investors 6.6 times.
Karvy Computershare Pvt. Ltd. Is the registrar of the issue. Those who had applied for HDFC AMC IPO can check the allotment status at Karvy Computershare’s website or on BSE website.
Here is the indicative HDFC AMC IPO timeline, according to Choice Broking, which had a subscribe rating to the issue:
Finalization of basis of allotment: 1 August 2018
Unblocking of ASBA account: 2 August 2018
Credit to demat accounts: 3 August 2018
Listing on stock exchanges: 6 August 2018
Many brokerages were optimistic on HDFC AMC IPO, citing strong parentage (HDFC group company), market leadership and strong growth. They were also optimistic about the strong growth potential in the Indian mutual fund sector. They also cited strong return ratios and higher dividend payout ratio in HDFC AMC’s favour.
HDFC AMC is a joint venture between mortgage lender Housing Development Finance Corporation (HDFC) and Standard Life Investments. HDFC AMC is the second biggest fund house in the country, with AUM or assets under management of Rs 2.91 trillion, as of 31 March 2018. It accounted for 13.7% of the total industry and 16.8% of actively managed equity-oriented AUM. Equity-oriented schemes generally have a higher fee structure.
Last year, HDFC AMC’s rival Reliance Nippon Life Asset Management Ltd raised Rs 1,542 crore in an IPO. According to a report, grey market operators expect shares of HDFC MF to list with gains of around 40%.