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HDFC AMC IPO oversubscribed on first day; subscription rate at 103%

HDFC Asset Management Company’s (AMC) initial public offering (IPO) of ₹2,800 crore garnered full subscription on the first day, receiving bids for 1,93,96,884 shares against a total of 1,88,04,290 shares offered by the company (which translates to a subscriber rate of 103%,) as per data provided on the National Stock Exchange’s (NSE) website.

The qualified institutional buyers (QIB) category’s investors subscribed 1.18 times, while non-institutional investors had a subscription rate of 55%, and retail investors subscribed 1.34 times.

The mutual fund firm’s IPO price band is ₹1,095 to ₹1,100 per share. The IPO offering is of 2,54,57,555 equity shares, which includes an anchor portion of 6,653,265 shares. The issue size also includes 4.08% stake (85,92,970) equity shares from HDFC Ltd and 7.95% stake (1,68,64,585) equity shares from Standard Life Investments.

On Tuesday, HDFC AMC had accumulated ₹732 crore from anchor investors, which include Reliance Strategic Investments, HSBC Indian Equity Mother Fund, Camas Investments, Singapore based Goldman Sachs and Kotak Emerging Equity Scheme.

HDFC AMC is HDFC group’s second IPO offering after HDFC Standard Life’s IPO offering which was made in November 2017. The company had filed papers with the Securities and Exchange Board (SEBI) of India in March this year, asking for approval to float an IPO. This is the second mutual fund IPO to be offered in the market after Reliance Nippon Life AMC, which went public in October 2017.

HDFC AMC is the country’s second largest mutual fund house, with a total asset management of over 3 lakh crores, as of March end. ICICI Prudential AMC, which has an asset base of 3.06 lakh crores hold the first position.

Book running lead managers to the issue are Axis Capital, Citigroup Global Markets India, HDFC Bank, Morgan Stanley India, Kotak Mahindra Capital, DSP Merrill Lynch, IIFL Holdings, J P Morgan India, Nomura Financial Advisory and JM Financial.

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