The leading mortgage lending company HDFC said today that it will offload over 4% stake in its asset management company HDFC Asset Management Co. Ltd (HDFC AMC) via a public issue.
The committee of directors has approved to offer 8,592,970 equity shares of HDFC AMC at a price of Rs.5 per share which represents close to 4.08% of the total paid up share capital.
The IPO of HDFC AMC got approval from its parent company HDFC in November last year. The board of HDFC had approved to offer its equity share in the AMC arm in one or more tranches to the public to maintain its equity of at least 50.01% in HDFC AMC. As of March 2017, the company held 59.99% stake in its asset management arm.
HDFC AMC reported total revenues and net profit figures of Rs.1,588 crore and Rs. 550 crore respectively in the fiscal year ended March 2017.
Post the IPO issue, HDFC AMC will continue to be the subsidiary arm of HDFC.
Meanwhile, the stock of HDFC ended the day with gains at Rs. 1863.25
With Inputs From PTI