A day after HDFC Asset Management Company’s (AMC) initial public offering (IPO) of ₹2,800 crore was oversubscribed to with a subscription rate of 103%, the company continued to receive bidding for 5.5 times their quota of 44.35 lakh shares by the end of the second day, as per data provided on the National Stock Exchange’s (NSE) website.
HDFC Mutual Fund’s IPO price band is ₹1,095 to ₹1,100 per share. The IPO offering is of 2,54,57,555 equity shares, which includes an anchor portion of 6,653,265 shares. The issue size also includes 4.08% stake (85,92,970) equity shares from HDFC Ltd and 7.95% stake (1,68,64,585) equity shares from Standard Life Investments.
The highest demand was recorded from non-institutional investors, bidding 13.9 times for their quota of 33.26 lakh equity shares. Bidding made by retail investors was 3.5 times of their quota of 77.62 lakh shares, while the employee category registered a bidding of 1.03 times their quota of 24 lakh shares.
The predicted HDFC AMC IPO timeline is as follows:
Finalisation of basis of allotment will take place on 1st August 2018, followed by unblocking of ASBA accoun, which will take place on 2nd August 2018. By 3rd August, Credits will be made to demat accounts, and listing on stock exchanges will take place on 6th August 2018.
HDFC AMC is HDFC group’s second IPO offering after HDFC Standard Life’s IPO offering which was made in November 2017. The company had filed papers with the Securities and Exchange Board (SEBI) of India in March this year, asking for approval to float an IPO. This is the second mutual fund IPO to be offered in the market after Reliance Nippon Life AMC, which went public in October 2017.
HDFC AMC is the country’s second largest mutual fund house, with a total asset management of over 3 lakh crores, as of March end. ICICI Prudential AMC, which has an asset base of 3.06 lakh crores hold the first position.
The HDFC AMC IPO bidding closes on 27 July, 2018.