Housing Development Finance Corporation Ltd. and Standard Life Investments Ltd. will sell 12 percent stake in their joint asset management subsidiary through an initial public offer.
Committee of directors approved offering as much as 85.9 lakh shares of HDFC Asset Management Company Ltd., representing 4.08 percent of the paid-up share capital, via the IPO, HDFC said in an exchange filing. Standard Life will sell 8 percent of its holding, HDFC Vice Chairman and Chief Executive Officer Keki Mistry told BloombergQuint in an interview.
In November last year, HDFC had said it would reduce its stake to at least 50 percent and Standard Life by around 13 percent to 24.9 percent. HDFC holds 57.36 percent stake in the unit while Standard Life owns 38.24 percent, according to information available on its website.
Applying Reliance Nippon Life’s valuation, since it is the only listed asset management company in India, HDFC AMC’s market capitalisation works out to Rs 19,094 crore, according to BloombergQuint’s calculations.
The offer document will be filed in the next couple of days, and the IPO is expected to take place in May-June after approval from the Securities Exchange Board of India comes through, Mistry added.
This would make HDFC AMC the second asset management company to list in India after Reliance Nippon Life made its debut in early November.
Shares of HDFC rose as much as 1.3 percent to Rs 1,881 after the announcement.