HDFC Mutual Fund has recently received approval from the Securities and Exchange Board of India (SEBI) to go ahead with its IPO. The asset management firm had filed its initial draft papers with the market regulator in March 2018. In response to this, the market regulator sent its observations to HDFC Mutual Fund recently. It is necessary for firms to receive SEBI’s observations before they go ahead with public issues such as the initial public offer, rights issue, and follow-on public offer.
HDFC Mutual Fund, the largest asset management company in the country, was formed in a partnership between HDFC and Standard Life Investments Limited. As per the draft papers submitted by HDFC Mutual Fund, the proposed IPO will see the company offering around 2.54 crore of its equity shares. To this end, Standard Life Investments and HDFC, the shareholders of HDFC Mutual Fund, will be selling a total of around 1.68 crore equity shares and 85.92 lakh shares, respectively.
Thus, the general public will be offered up to a total of 2.21 crore shares. The company will be reserving 3.20 lakh shares for its own employees and reserving another 24 lakh shares for current eligible shareholders of HDFC. If the company goes ahead with its IPO soon, it might turn out to be the second mutual fund house to launch its IPO following Reliance Nippon Life Asset Management Limited.
In addition to giving approval to HDFC Mutual Fund, the market regulator has also given approval to six more firms to launch their IPOs. The firms that have received clearance from SEBI are Varroc Engineering, Genius Consultants, Sandhya Marines, CreditAccess Grameen, Nekkanti Sea Foods, and Atria Convergence Technologies. In total, the Securities and Exchange Board of India has given approval to around 27 companies to launch their IPOs this year.
Source: The Times of India, Business Today