Price set for mutual IPO by HDFC

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HDFC Asset Management Company, the country’s second largest mutual fund house, has fixed a price band of Rs 1,095-1,100 per share for its initial public offering (IPO), that hopes to garner up to Rs 2,800 crore.

The IPO will be open for public subscription from July 25 to 27, HDFC said in a regulatory filing to the bourses.

HDFC AMC operates as a joint venture between HDFC and Standard Life Investments.

According to the draft red herring prospectus filed by the asset management firm, the IPO size of 2.54 crore shares comprises an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life.

HDFC AMC is selling a 4.08 per cent stake in the IPO, while Standard Life will offload a 7.95 per cent holding.

“The price band for the IPO has been fixed at Rs 1,095 to Rs 1 ,100 per equity share of face value Rs 5 each of HDFC AMC and that the minimum bid lot for the IPO has been fixed at 13 equity shares and applications may be made in multiples of 13 equity shares thereafter,” HDFC said.

HDFC AMC had a total asset under management of over Rs 3 lakh crore at the end of March. It will become the second AMC to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.

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.

Bank shares

HDFC Bank on Tuesday said it had raised Rs 8,500 crore by issuing over 3.9 crore shares on a preferential basis to its parent HDFC Ltd.

“The share allotment committee of the bank at its meeting held today has allotted 3,90,96,817 shares to HDFC at an issue price of Rs 2,174.09 per equity share aggregating to Rs 84,99,99,98,871.53,” HDFC Bank said in a regulatory filing on Tuesday.

This is part of the bank’s Rs 24,000-crore fund-raising plan that was approved by the board of directors in December.

Of this, Rs 8,500 crore was planned to be raised by issuing equity to HDFC on a preferential basis and the balance through the issuance of equity shares or convertible securities or depository receipts or a qualified institutional placement or through ADR/GDR.

As on June 30, 2018, promoter HDFC held 20.86 per cent of the bank’s equity capital. The bank scrip closed 0.34 per cent up at Rs 2176.70 on the BSE on Tuesday.

Meanwhile, HDFC Bank said in an announcement to the bourses that at a meeting held today, its special committee of directors had decided to allot 3,90,96,817 equity shares by way of preferential allotment to HDFC.

This will be done at a price of Rs 2174.09 per share. With HDFC subscribing to the shares, post allotment the corporation jointly with its wholly owned subsidiaries – HDFC Investments Ltd and HDFC Holdings Ltd – will hold 58,23,12,917 equity shares, representing 22.03 per cent of the private sector bank.

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