HDFC Asset Management Company , the country’s second-largest fund house, is scheduled to bring an Initial Public Offering (IPO). The company plans to raise Rs 3,462 crore by offloading more than 2.5 crore shares of face value of Rs 5 per share. The minimum lot size is of 11 shares and the offer will close on July 13. It will be the second mutual fund company to get listed after Reliance Nippon Life AMC. Also Read - HDFC group surpasses Tatas in m-cap
The company spokesperson, said, “Terms of the Offer, including the Offer opening and closing dates, shall be determined and disclosed in the red herring prospectus of the Company, upon its registration with the Registrar of Companies, Maharashtra at Mumbai. “ Also Read - HDFC AMC, HDFC Trustee Company settle case with Sebi; pay Rs 3.78 cr
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. It has a total asset under management (AUM) of more than Rs 3 lakh crore as on March 31st, 2018. Also Read - HDFC AMC net jumps 15% to Rs 206 cr
Earlier, Securities and Exchange Board of India (Sebi) asked HDFC Asset Management to stop with the placement of shares ahead of its initial public offering. The capital market regulator asked the fund house to return the money to financial advisors and distributors at 12 per cent, according to a report in The Economic Times.
This is the first time a mutual fund has offered its shares to distributors before getting listed on the exchange. This year in the month of April the mutual fund company sold shares worth Rs 150 crore to distributors. The stock was reportedly given to 190 advisers and distributors at Rs 1,050 per share.
Nomura Financial Advisory and Securities (India), Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley India are the book running lead managers to the issue.
Apart from HDFC AMC, other companies that have got SEBI clearance for IPO include Sandhya Marines, Varroc Engineering, CreditAccess Grameen, Genius Consultants, Atria Convergence Technologies and Nekkanti Sea Foods. RITES IPO has also got listed today on the exchange today at Rs 190 and is, currently, trading at Rs 222.70.
(With PTI Inputs)