HDFC Asset Management Company (AMC) has fixed a price of ₹1095 to ₹ 1100 per share for its Initial Public Offering (IPO) dated July 25 to July 27. A minimum of 13 equity shares are to be purchased and further purchases need to be done in multiples of 13.
HDFC AMC generated a 17.6% increase in its revenues for the financial year 2017-2018 with its total revenues standing at ₹ 1867.24 crores. More importantly, the mutual fund has recorded a 31% increase in its net profits at ₹722.61 crore from ₹550.24 crore the previous year.
HDFC AMC was approved to act as the Asset Management Company for the HBFC Mutual Fund by SEBI vide its letter dated July 3, 2010. In the year 2003, Standard Life Investments was permitted to act as the co-sponsor of HDFC Mutual Fund. At present, HDFC AMC holds a 60% stake in the Mutual Fund and Standard Life Investments holds the rest.
The Red Herring Prospectus draft (RHP) was filed on 13 July and it was approved on 17 July.
Equity shares for the IPO
While HDFC AMC will be selling 85,92,970 shares, Standard Life Investments will be pooling out 1,68,64,585 of its shares. Together 12.03% shares of the HDFC Mutual Fund will be sold. HDFC AMC will be selling 4.08% and Standard Life Insurance will be selling 7.95%. HDFC AMC plans to raise ₹2787.60 – ₹2800.33 crore through this public issue.
Kotak Mahindra Capital Company, 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 Company and Nomura Financial Advisory and Securities (India) are the book running lead managers for this issue.
The IPO will be listed at the BSE and NSE India.