One of the country’s largest mutual fund companies, HDFC Mutual Fund can raise Rs 4,000 crore from the IPO. HDFC and Standard Life Investments are considering this IPO, the largest holding companies in HDFC Mutual Fund.
Both companies can sell 10% stake in HDFC Mutual Fund through an IPO. On the condition of not disclosing the names, two persons related to the case said that the valuation of the company has been estimated at Rs 40,000 crore.
To manage this IPO, Bank of America-Merrill Lynch, Credit Suisse and Citigroup are likely to be selected. This will be the second IPO by any AMC in India.
Significantly, this year, Reliance Nippon Asset Management Company had introduced an IPO of Rs 1,540 crore in November. This issue was oversubscribed up to 81 times.
In this IPO of HDFC MF, both associate companies will reduce their 5-5% stake. This proposal was flagged off by the company’s board in November itself. This AMC has an AUM of Rs 2.92 lakh crore. The company had earned a profit of Rs 550 crore in the financial year ending March 2017.
In the first 6 months of this financial year, the net profit of the company was Rs 310 crore. According to Amit Kumar, partner and director of Boston Consulting Group, “Savings are now taking the form of investment and people are turning to schemes of mutual funds instead of real estate and gold.”
The company had submitted the documents to the IPO in March for the SEBI. On June 22, the company has got ‘conclusion’ of SEBI on it. Sebi’s conclusions are essential for bringing a public issue to a company.
2.54 crore shares will be sold through the IPO. HDFC will sell 85.92 lakh shares, while Standard Life will sell 1.68 crore shares. This sale will be through offer for sale. Under this issue, 2.21 crore shares will be sold to retail investors. 3.20 lakh shares have been reserved for the employees of HDFC AMC. In addition, 2.4 million shares will be reserved for the shareholders of HDFC.
Experts are confident about the success of this IPO. He believes that there are still plenty of potential left in the mutual fund market and HDFC is leading in this segment.
IPO approval for 6 More companies IPO Coming in this month
In addition to the HDFC AMC, Sebi has allowed six companies – Janice Consultant, Sandhya Marines, Atria Convergence Technologies, Varroc Engineering, Credit Gates, Rural and Nicanti Foods – to bring an IPO this month. So far this year, 27 companies have got approval for the IPO.
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. Management has been entrusted with responsibility.
HDFC Mutual Fund (MF) IPO Reviews:
– It is very good ipo to invest for long term. Both companies are strong in stock market with good valuation..
|HDFC Mutual Fund (HDFC MF) IPO Details|
|Subscription Dates||25 – 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||INR2,800.33 Cr|
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
HDFC MF IPO Financial Performance (in INR crore)
HDFC Mutual Fund IPO Subscription Status
|Category||Day 1||Day 2||Day 3|
- HDFC MF IPO Prospectus
1. Draft Prospectus
2. Red Herring Prospectus
- HDFC Mutual Fund IPO Lead Manager(s)
1. Nomura Financial Advisory and Securities (India)
2. Kotak Mahindra Capital
3. Axis Capital
4. BofA Merrill Lynch
5. Citigroup Global Markets India
6. CLSA India
7. HDFC Bank
8. ICICI Securities
9. IIFL Holdings
10. JM Financial, JP Morgan India
11. Morgan Stanley India
- Company Contact Information Details
HDFC Mutual Fund
“HDFC House”, 2nd Floor,
H. T. Parekh Marg,
165-166, Backbay Reclamation,
Churchgate, Mumbai – 400020.
Tel No: 1800 3010 6767 / 1800 419 7676 (Toll-free)
Fax : 022 – 22821144
- HDFC Mutual Fund IPO Registrar Details
Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India
Email: [email protected]