IPO watch: HDFC MFs sets Rs.1,095-1,100 price band; set to garner Rs 2,800 crore

HDFC Asset Management Company, the country’s second-largest mutual fund firm, has fixed a price band of Rs 1,095-1,100 per share for its initial public offering (IPO), through which it is estimated to garner Rs 2,800 crore. The initial share-sale offer will be open for public subscription from July 25 to 27, HDFC said in a regulatory filing to stock exchanges.

HDFC 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.

HDFC AMC is selling 4.08% stake in the IPO, while Standard Life will offload 7.95% 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. At the upper end of the price band, the public issue is expected to garner Rs 2,800 crore.

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HDFC AMC, which has a total asset under management of over Rs 3 lakh crore at the end of March, is the country’s second-largest fund house after ICICI Prudential 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.