HDFC AMC IPO 2018: One of the most awaited IPOs of 2018, HDFC AMC IPO opens for subscription by retail investors today. HDFC AMC, the country’s second-largest fund house in terms of average assets under management (AAUM), is planning to raise around Rs 2,800 crore from its initial public offering (IPO). On Tuesday, the IPO garnered Rs 732 from anchor investors. The company’s IPO committee has finalised allocation of 66,53,265 equity shares to 35 anchor investors at Rs 1,100 per scrip, the firm said in a regulatory filing.
“At upper price band of Rs1,100 the issue is valued at FY18 P/E of 32x and 8% of AUM which we believe is justified on account of favourable view on HDFC’s brand, higher mix of high-margin equity assets than the industry average, consistent return on equity (RoE) of 40% in the recent past work in the company’s favour. We recommend ‘Subscribe’ to the issue with a long-term perspective,” Geojit Financial Services said in a report.
HDFC AMC IPO 2018 details: 11 key things to know
Issue opens: July 25, 2018, Wednesday
Issue closes: July 27, 2018, Friday
Price band: The company has set a price band of Rs 1,095-1,100 per share
Issue size: 25,457,555 equity shares (comprises of offer for sale of up to 8,592,970 equity shares by HDFC Ltd and 16,864,585 equity shares by Standard Life Investments.
Offer size: Rs 2,787.6 crore-2,800.3 crore
Face Value: Rs 5
Book value: Rs 102.58 (March 31, 2018)
Bid size: 13 equity shares and in multiples thereof
Listing: BSE and NSE
Book Running Lead Manager: Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, DSP Merrill Lynch Ltd, Citigroup Global Markets India Private Ltd, CLSA India Pvt Ltd, HDFC Bank Ltd, ICICI Securities Ltd, IIFL Holdings Ltd, JM Financial Ltd, J.P. Morgan India Pvt Ltd, Morgan Stanley India Company Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd
Registrar to issue: Karvy Computershare Private Limited