HDFC Asset Management Company (AMC), which listed on the bourses today, has made a strong debut. On the Bombay Stock Exchange (BSE), the company listed at Rs.1,739, which was a 58.09% premium over its issue price of Rs.1,100. On the National Stock Exchange (NSE), the company’s scrip was listed at Rs.1,726.25, which was 56.93% over the issue price.
The asset management firm’s Rs.2800 crore IPO, which was open for subscription between July 25 and July 27, was subscribed 83.06 times. The company had fixed a price band between Rs.1,095 and Rs.1,1100 per share. HDFC AMC’s total IPO comprised of 25,457,555 shares, including the 66,53,265 shares that were allocated to anchor investors. The company, ahead of launching its IPO, had raised a sum of Rs.732 crore from anchor investors. Through its public issue, the company raised a total of Rs.2800.333 crore by issuing 2,54,57,555 shares at Rs.1,100 a piece.
Among the companies that are a part of the HDFC Group, HDFC AMC is the fourth company to list on the stock market. The company is also the second asset management firm to list on the bourses after Reliance Nippon Life AMC. The response that HDFC AMC received after listing on the BSE and NSE has been compared to the performance of Reliance Nippon Asset Management, which launched its Rs.1,542 crore IPO last year.
HDFC AMC was formed in a partnership between Housing Development Finance Corporation (HDFC) and Standard Life Investments. As on March 2018, the company’s assets under management (AUM) totalled over Rs.3 lakh crore. The company’s IPO is managed by Axis Capital, Kotak Mahindra Capital Company, Citigroup Global Markets India, DSP Merrill Lynch, CLSA India, ICICI Securities, HDFC Bank, IIFL Holdings, JP Morgan India, JM Financial, Nomura Financial Advisory, and Morgan Stanley India.
Sources: The Times of India, Moneycontrol, Economic Times