HDFC Asset Management Company’s IPO has opened for investment. This IPO of Rs 2800 crore andd we can invest in till July 27 on Friday. It is the country’s second domestic mutual fund company to offer an IPO.
What is the Price Band?
The price band for HDFC AMC’s IPO has been fixed at Rs 1095-1100. At the higher price, its valuation is 32 times. HDFC AMC is the most profitable home fund house
HDFC and Standard Life will sell their stake in this IPO. Together, they will reduce their share of 12.01%. It is 10.46% of the company’s paid-up capital after the IPO.
The valuation of the company has been around 20% of premiums compared to the only rival Reliance Nippon Life Asset Management, listed in the stock market. Reliance Nippon is currently trading at a discount. This IPO, which came in October last year, was subscribed up to 81.54 times.
BD Distribution Network
On the question of premium, HDFC AMC’s MD Milind Barve said, “Our business is quite different, the company’s asset under management (AUM) is quite high, our equity AUM is a more margin business, our operating profit from major asset management is about 92% is higher. ”
Equity-based AUM’s share in the company’s total AUM is 51.3%. In this case, the industry averages 43.2%. This AMC has 209 branches. The number of distributors in the company is more than 65,000, indicating how wide its network is.
Milind Barve said that the price band of the IPO is reasonable. He said that Anchor investors have shown great interest in this issue. Analysts also believe that this valuation is correct due to strong base, better growth and greater market share.
What is the Opinion of Analysts & Brokerage Advice?
Brokerage firm Motilal Oswal Securities believes that the image of the HDFC AMC brand is quite positive. Over-margin equity-based AUMs, fixed ROEs, extensive distribution networks and better dividend payments work in favor of company.
Angel Broking said there are many possibilities in the mutual fund industry. Strong return ratios, better asset quality, higher dividend payouts, and excellent performance record make this a better choice. The brokerage advised to subscribe to this IPO.
Centrum Broking believes that due to being in the front line in the industry, the company will benefit and it can make better profits. Brokerage has advised to subscribe to HDFC AMC’s IPO with reliability.
HDFC AMC has been the top fund house for equity based AUM since the fourth quarter of FY11. Its share in the industry’s total AUM is 13.7% and its equity in equity AUM is 16.8%.
HDFC AMC News:
HDFC AMC IPO GMP – Grey Market Premium
HDFC Asset Management (AMC) IPO Reviews & Subscription Details
HDFC Asset Management (AMC) IPO Details
|Subscription Dates||25 to 27 July 2018|
|Issue Price Band||INR 1095 – 1100|
|Minimum bid (lot size)||13 Shares|
|Minimum Lot Amount||Rs 14300|
|Face Value||INR 5 per share|
|IPO Size||INR 2800.33 Cr|
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
HDFC AMC IPO Financial Performance (in INR crore)
HDFC AMC IPO Reviews:
– Good for Short Term & Long Term. It is very good ipo to invest in this year of 2018. company’s assets & financial condition is very strong in stock market with good valuation..
HDFC AMC IPO Lead Manager(s):
- Axis Capital Limited
- BoA Merrill Lynch
- Citigroup Global Markets India Private Limited
- CLSA India Private Limited
- HDFC Bank Limited
- ICICI Securities Limited
- IIFL Holdings Limited
- J.P. Morgan India Private Limited
- JM Financial Consultants Private Limited
- Kotak Mahindra Capital Company Limited
Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India
Email: [email protected]