HDFC AMC’s Rs 2,800-Crore IPO Opens Next Week
Housing Development Finance Corporation Ltd. will raise up to Rs 945.2 crore by selling 4.08 percent stake in its asset management arm through an initial public offering. The Rs 2,800-crore IPO will also see its joint-venture partner Standard Life offload stake.
The price band of the HDFC Asset Management Company Ltd.’s public offer has been fixed at Rs 1,095-1,100 apiece, parent HDFC said in an exchange filing today. The minimum bid lot has been fixed at 13 equity shares and applications may be made in its multiples, the filing said.
The IPO will open for anchor subscription on July 24 and for the public between July 25 and July 27. HDFC will offload up to 85.9 lakh shares through the maiden offer. This is in-line with its last year’s plan to reduce stake to at least 50 percent in the subsidiary.
Standard Life Investments Ltd., a joint promoter in HDFC AMC, will also sell 7.95 percent stake, according to its red herring prospectus. Standard Life’s current 38 percent stake in the subsidiary would be valued at about 970 million pounds, Bloomberg reported citing a statement by Standard Life Aberdeen.
(Corrects an earlier version that misstated the size of the IPO)