HDFC Asset Management Company, the country's largest mutual fund firm, has received Sebi's go-ahead to float an initial public offer.\u00a0The company had filed draft papers with Securities and Exchange Board of India (Sebi) in March and received its "observations" on June 22, as per the latest update with the markets watchdog. Sebi's observations are necessary for any company to launch public issues like rights issue, initial public offer (IPO) and follow-on public offer (FPO).\u00a0HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. Going by the draft papers, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life.\u00a0The offer comprises a net offer to public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees. Besides, 24 lakh shares have been reserved for eligible HDFC shareholders. Earlier, the regulator had kept HDFC AMC's proposed IPO in abeyance \u201cfor examination of past violations\u201d.\u00a0HDFC AMC, which has a total asset under management of more than Rs 3 lakh crore at the end of March, may become the second AMC to hit the markets after Reliance Nippon Life AMC. 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 are the book running lead managers to the issue. Apart from HDFC AMC, Sebi has so far this month given clearance to six other companies - Genius Consultants, Varroc Engineering, CreditAccess Grameen, Sandhya Marines, Atria Convergence Technologies and Nekkanti Sea Foods- to launch IPOs. \u00a0 In all, 27 firms have been given the go-ahead for initial share-sale this year.\u00a0The public issue of Varroc Engineering, which is underway, will close today.