HDFC AMC’s offer-for-sale closes; retail investors’ portion subscribed 82 per cent

By: |
Published: June 18, 2020 8:43 PM

Retail investors bid for 9,87,191 shares on Thursday as against 12 lakh scrips on offer, translating into a subscription of 82 per cent, according to data available with the National Stock Exchange.

HDFC Bank, HDFC bank news, HDFC Asset Management Company
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

HDFC Asset Management Company’s offer-for-sale (OFS) by promoter Standard Life Investments closed on Thursday, with retail investors subscribing 82 per cent of the portion reserved for them.

Retail investors bid for 9,87,191 shares on Thursday as against 12 lakh scrips on offer, translating into a subscription of 82 per cent, according to data available with the National Stock Exchange.

Further, the non-retail category, who opted ‘carry forward’, got bids for 3,89,561 shares.

On Wednesday, OFS attracted robust response from non-retail investors as the category was subscribed 2.6 times on Wednesday.

The two-day OFS mechanism closed on Thursday.

Standard Life offered to sell a total of 60 lakh shares, representing 2.82 per cent stake, through the OFS. The floor price for the OFS was fixed at Rs 2,362 each, a 6.92 per cent discount to the closing price of Rs 2,537.65 on Tuesday.

In the event of oversubscription, Standard Life planned to sell another 60 lakh equity shares.

Overall, Standard Life planned to offload 1.2 crore equity shares or 5.64 per cent stake of the fund house.

The share sale is being undertaken by the promoter for achieving the minimum public shareholding in the company as prescribed under markets regulator Sebi’s norm.

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

Standard Life had sold 47.5 lakh equity shares, representing 2.23 per cent stake, of HDFC AMC through offer-for-sale in December last year.

As of March this year, Standard Life held 26.89 per cent stake in the mutual fund house, while HDFC owned 52.72 per cent.

In July 2018, HDFC AMC had hit the capital markets to raise an estimated Rs 2,800 crore through its initial public offering.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Nabard launches Rs 5,000-crore scheme for computerisation of PACS by FY23
2HSBC gets nod to set up IBU at GIFT City
3HDFC Bank launches probe on auto loan practices following allegations