HDFC AMC's IPO debuts at 59% premium on BSE, 65% on NSE
06 August 2018
HDFC Asset Management Company Ltd today made a strong market debut, with the scrip getting listed at Rs1,739 on the BSE, a 58.09-per cent premium over its issue price of Rs1,100.
The scrip listed at a premium of 65 per cent at Rs 1,815 per share on the National Stock Exchange Ltd.
The scrip was trading 63.89 per cent higher at Rs1,811 over issue price on BSE at around 10.15 am.
The Rs2,800-crore initial public offering by the country’s second-largest asset manager was subscribed 83 times on the last day of the bidding led by demand from non-institutional investors.
The public offer comprised 2,54,57,555 shares, including an anchor portion of 66,53,265 shares. The non-institutional investors’ category received over 195 times more demand than the shares on offer. The segment reserved for qualified institutional buyers got subscribed over 192 times, according to lead manager Axis Capital. The retail investor segment was subscribed 6.61 times.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation and Standard Life Investments. It has total assets under management of over Rs 3 lakh crore as of March end.
This is the second asset management company to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.
HDFC AMC’s equity-oriented AUM to total AUM (assets under management), at 51.3 per cent, is greater than the industry average of 43.2 per cent. The AMC has 209 branches and a network of over 65,000 distributors.
Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC BankNSE -0.40 %, ICICI Securities, IIFL Holdings, JM Financial, J P Morgan India, Morgan Stanley India and Nomura Financial Advisory managed the company's IPO.
HDFC AMC’s market share in total industry AUM stood at 13.7 per cent, and that of actively managed equity-oriented at 16.8 per cent.