HDFC Asset Management Company, which is one of the largest mutual fund houses in India, will be launching its Rs.2,800 crore IPO on July 25. The shares will be open for subscription until July 27. The price band for the shares has been fixed at Rs.1,095 to Rs.1,100 apiece.
HDFC AMC will be offering up to 2.54 crore shares in the IPO sale. The company’s joint venture partners HDFC and Standard Life are offering 85.92 lakh shares and 1.68 crore shares, respectively. Through the sale of equity shares in the IPO, HDFC will be diluting its stake in the AMC by up to 4.08%, while Standard Life will be diluting its share in the company by up to 7.95%. At the higher end of the price band, the IPO is expected to garner a sum of Rs.2,800 crore for the AMC.
HDFC Asset Management Company had raised a sum of Rs.732 crore from anchor investors ahead of its IPO launch. In a regulatory filing, the company said that its IPO committee had finalised the allocation of a total of 66,53,265 shares to 35 anchor investors at a sum of Rs.1,100 per scrip. Among these anchor investors are Reliance Strategic Investments, Camas Investments, Goldman Sachs (Singapore), FIL Investments (Mauritius), Abu Dhabi Investment Authority – Relval, HSBC Indian Equity Mother Fund, Kotak Emerging Equity Scheme, SBI Large and Mid Cap Fund, and Smallcap World Fund, Inc.
With the launch of its IPO, HDFC AMC will become the second asset management company to hit the bourses after Reliance Nippon Life Asset Management Company, which raised a total sum of Rs.1,542 crore through its IPO last year.
Source: The Times of India, Money Control