The issue of second largest asset company HDFC AMC today made its debut on the bourses with a premium listing at Rs. 1,739 on the BSE, a gain of 58.09% as against the issue price of Rs. 1,100. The stock of asset manager reached an intra-day high of Rs. 1,832 on the BSE.
The issue of HDFC AMC opened for public subscription from July 25 and July 27. Led by institutional investor class, the issue drew overwhelming response with 83 times over-subscription. The response however gathered was of the same scale as received by the issue of peer firm Reliance Nippon which came up with the public issue of Rs. 1,542 crore last year.
The IPO received bids for 156.19 crore equity shares against the total issue size of 1.88 crore shares that excludes anchor portion. The reserved portion of qualified institutional investors oversubscribed by 192.26 times, non-institutional investors 195.15 times and retail 6.73 times.
Through the public issue, the joint venture companies of HDFC AMC, Housing Development Finance Corporation and Standard Life Investments aggregated a total of Rs 2,800.33 crore by issuing 2,54,57,555 equity shares at Rs 1,100 for a share. The joint venture companies through the public issue reduced their stake.
Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC BankNSE -0.40 %, ICICI Securities, IIFL Holdings, JM Financial, J P Morgan India, Morgan Stanley India and Nomura Financial Advisory were the lead managers of the company's IPO.
Most of the brokerages had a positive outlook for the AMC company listing given its strong parentage of HDFC group, attractive returns and large distribution network. Nonethless, analysts advise caution for fresh investors in HDFC AMC shares.
At 1:10 pm, the stock of HDFC AMC IPO was quoting higher by 64.11% at Rs. 1805.20.