HDFC AMC likely to float IPO in May

The asset management business of HDFC is likely to be listed on the Indian stock exchanges in the month of May.

Incorporated in 1999, HDFC Asset Management Company is a venture between HDFC and Standard Life Investments. The company was approved to act as an AMC for the HDFC Mutual Fund by SEBI in 2000.  As on September 30, 2017, HDFC Limited holds 57.36 per cent stake and Standard Life holds 38.24 per cent stake, while other investors hold 4.40 per cent stake in the company.   

The company is planning to float an IPO through an offer for sale of 2.54 crore equity shares, according to the draft red herring prospectus (DRHP) filed with SEBI. The price band is expected to be around Rs. 1,400 to Rs. 1,500 per share valuing HDFC AMC at Rs. 30,000 crore. The paid up capital of the company is Rs. 210.5 crore, as on March 15, 2018. Both HDFC and Standard life are offering their stake through the IPO.

HDFC AMC is one of the largest mutual fund houses in the country. The company has an average Asset Under Management (AUM) of Rs 2.89 lakh crore as of the end of December 2017. For the year ended March 2017, the company posted net profit of Rs. 550.25 crore as against Rs. 477.88 crores for the corresponding period a year ago.

HDFC AMC would be the second AMC to be listed on the Indian stock exchanges after Reliance Nippon Life.