Everything you need to know about the IPO of HDFC Asset Management Company Limited

#1

The IPO of HDFC Asset Management Company Limited opens on July 25th and closes on July 27th. The company is offering shares in the price band of Rs.1095 to Rs.1100.

About HDFC Asset Management Company Limited
Incorporated in 1999 HDFC Asset Management Company Limited is the second largest AMC in India. It is a joint venture between Housing Development Finance Corp Ltd (HDFC) and Standard Life Investments Ltd. It is the second largest AMC with 2.92 lakh crores of assets under management. HDFC AMC has also been the most profitable AMC in India since FY 13 according to ratings agency CRISIL.

Purpose of the issue
To get the benefits of listing on the stock exchanges. All the proceeds of the IPO will go to the selling shareholders.

Shareholding pattern

Pre issue Post issue
HDFC Ltd 12,07,72,800 57% 11,21,79,830 52.90%
Standard Life Inv 8,05,15,200 38% 6,36,50,615 30%
Public 1,07,00,800 5% 3,61,58,355 17.10%

Issue details
The issue consists of an offer for sale (OFS) of 2.5 crore shares.

IPO schedule
Issue opens - July 25th
Issue close - July 27th
Face value - Rs.5
Issue size - Rs.2800 crores at the upper end of the price band.
Listing on both NSE and BSE
Retail portion - 35%
Bid lot - 13 shares

Basis of allotment - August 1
Refunds - August 2
Credit of shares - August 3
Listing - August 6
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Are you applying for this IPO?

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#3

Thanks to @suresh for his effort…:slightly_smiling_face:

Since the title is ‘Everything you need to know…’, I’m posting my doubt here instead of a new thread.

Can I apply for the IPO in both the Individual and the Shareholder categories?

The investor services department has mentioned,

In case Eligible HDFC Shareholders apply for Shares under both the HDFC Shareholders Reservation Portion and also in the non-reserved portion in excess of 169 Shares, their applications in both the categories will be treated as multiple applications and will be liable to be rejected.

and,

Please also note that Bids by Eligible HDFC Shareholders in the HDFC Shareholders Reservation Portion as well as in the Retail Portion shall not be treated as multiple Bids. However, Bids by a person in the HDFC Shareholders Reservation Portion as well as in the Non-Institutional Portion (generally referred as HNI portion) shall be treated as multiple Bids and therefore liable to be rejected.

With this information I assume one could apply for 1 lot in both the categories safely… I mean his applications would not be rejected.

Could someone help in understanding the situation?

#4

I need to understand why an AMC needs to issue an IPO. Do they want to invest the public’s accumulated money in the funds or what?

Please explain this as well. What does it mean?

#5

From whatever I could make out if you bid under the shareholder category is less than 2 lakhs it should be fine but I am not too sure.

#6

That means the money raised from the IPO will go to the HDFC bank and Standard Life. HDFC AMC won’t be getting anything.

#7

Thanks.

#8

I think its not HDFC Bank but HDFC and Standard Life would get the money…

#9

My Bad, It’s HDFC and not HDFC bank.

#10

Hello,
I have an account in Zerodha and I applied for HDFC AMC IPO on 25th July through my Axis Bank account. and status I see over there is “The application has been accepted by Exchange” and my money is blocked. I didn’t get any message from NSE yet for IPO Application Number. more than 48 hours spent. Bank not giving any help for IPO. I want to know that is my application filled successfully or not? if yes then when can I get Application Number from NSE. Please help me. Thanks is Advance.

#11

If the amount is blocked, then your application is accepted.

#12

That’s fine. But Only problem is I didn’t received any mail or message for application number. Any idea about this?

#13

it is an a fresh issue of equity shares but offer for sale by existing shareholders.so company will not get any money but selling shareholders.

#14

I don’t apply through Axis Bank. My bank provides me with application number instantly but never received any email or SMS from NSE.
Don’t worry! Just see if a lien amount is present on your Axis bank account. You can also check the status after few days on share registrar’s website.

#15

i mean it is NOT A FRESH ISSUE OF EQUITY SHARES …

#16

It clearly means if eligible one can apply in hdfc shareholders reserved quota PLUS maximum up to 169 share in non reserved quota.

#17

I got message while applied for RITES LTD. That’s only why I am worried about. Anyways Thanks for your reply.

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#18

hi guys, can i kindly know, what may be the the cut off price or the issue price, u r expecting for this ipo…

#19

Upper price band i.e. Rs. 1100

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#20

well @mac76 , all who quoted for 1100 Rs will get the shares know.

#21

NO. all who applied @ 1100 will not get allotment .The offer oversubscribed by 83.06 times as per data available on the NSE.
The reserved portion of qualified institutional investors oversubscribed by 192.26 times,
non-institutional investors 195.15 times and
retail 6.73 times.
The issue received bids worth Rs 1.72 lakh crore against the IPO size of Rs 2,800 crore.

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