HDFC AMC Makes Sixth-Best Market Debut In Two Years

HDFC Asset Management Company Ltd.’s market debut was the sixth best in more than two years on 6 August.

HDFC Chairman Deepak Parekh and Milind Barve, MD & CEO of HDFC AMC, at the roadshow of HDFC AMC IPO in Mumbai. 

(Photo Courtesy: Sajeet Manghat/BloombergQuint)

HDFC Asset Management Company Ltd.’s market debut was the sixth best in more than two years.

The stock ended 65 percent higher at Rs 1,816 apiece on the BSE, compared with its issue price of Rs 1,100.

Salasar Techno Engineering Ltd. had offered the highest premium of 151.94 percent, followed by Astron Paper & Board Mill Ltd. (139.4 percent), Avenue Supermarts Ltd. (114.29 percent), Central Depository Services (India) Ltd. (75 percent) and Apollo Micro Systems Ltd. (65.12 percent).

Day 1 Gains

Best Listing-Day Gains Since April 2016

(Photo Courtesy: BloombergQuint)

HDFC AMC Managing Director Milind Barve’s stake is worth Rs 212.47 crore—the most among the key management personnel of the country’s second-largest asset manager.

The public offer comprised 2,54,57,555 shares, including an anchor portion of 66,53,265 shares. The non-institutional investors’ category received over 195 times more demand than the shares on offer.

The segment reserved for qualified institutional buyers was subscribed over 192 times, according to lead manager Axis Capital. The retail investor segment was subscribed 6.61 times.

The behavioral change that’s sweeping over India in the last four years is bringing a pool of money into mutual funds, Barve told BloombergQuint. The mutual fund industry is collecting on average Rs 7,500 crore a month from systematic investment plans, he said.

SIPs have emerged as the most powerful tool.  

Milind Barve, Managing Director, HDFC AMC

HDFC AMC is a joint venture between Housing Development Finance Corporation and Standard Life. The total assets under management of the fund house stood at over Rs 3 lakh crore as of March-end.

This is the second asset management company to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.

(This story was originally published on BloombergQuint)