HDFC AMC IPO or HDFC Asset Management Company IPO is the latest IPO drafted under SEBI. In this article, we will have a detailed HDFC AMC IPO Review along with in-depth analysis of this IPO’s Object, Offerings, Companies Financials, Companies reputation, Allotment Status, Grey Market pricing, Release Date, Price & more.
HDFC AMC IPO Review & Ratings
|HDFC AMC IPO Ratings & Review|
|Top Brokers Review||9.5/10|
Summary – HDFC AMC IPO
Lets have a short summary of HDFC AMC IPO. HDFC Asset Management IPO is commonly known as HDFC Mutual Fund IPO. It is one of most famous IPO of 2018 drafted with SEBI. This IPO has been on March 16th 2018.
HDFC AMC has hired multiple companies as its Book Running Lead Managers like Kotak Mahindra Capital, Axis Capital, DSP Merill Lynch Limited, CITIGroup Global Markets, CLSA India, HDFC Bank Limited, ICICI Securities Limited, IIFL Holdings Limited, JM Financial Limited, JP Morgan India, Morgan Stanley India, Nomura Financial Advisory.
Other than this, they have hired Karvy Computershare Private Limited as their Registrar of the offer.
HDFC AMC is a joint venture between HDFC & Standard Life Investments Limited (SLI). The Company is delivering Asset Management Services like Mutual Funds Investment, Portfolio Management & Segregated Account Services for HNI’s.
The Company has a massive client base of 7.61 million Live accounts. They offer 127 Mutual Fund Schemes. HDFC AMC has a total AUM of INR 2932.54 billion in Dec, 2017. The AMC is one of the largest mutual fund investment providers in the country.
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HDFC AMC IPO Date
IPO issue Date is – 2nd Week of May
HDFC AMC IPO Subscription
The IPO will be up in the stock exchange for subscription in the 2nd week of may 2018. Then, we will see the data of Subscription.
HDFC AMC IPO Allotment Status
The Allotment status will be out within 2-3 weeks of IPO issue. Please check the IPO allotment status post issue of IPO.
HDFC Asset Management Company – Company Overview
HDFC AMC is one of the largest mutual fund house in the country. The Company is headquartered in Mumbai. The Financial company was approved to work as an Asset Management Company of the HDFC Mutual Fund by SEBI in June 2000. Some of the key members of the company are –
- Piyush Surana (CFO)
- V. Suresh Babu (Head of Operations)
- Anil Kumar Hirjee (Chairman)
Let’s understand about companies key strategies –
- Maintain strong investment performance
- Expand our reach and distribution channels
- Enhance product portfolio
- Invest in digital platforms to establish leadership in the growing digital
Companies Competitive Edge –
- Consistent market leadership position in the Indian mutual fund industry.
- Trusted brand and strong parentage
- Strong investment performance supported by comprehensive investment philosophy and risk management
- Superior and diversified product mix distributed through a multi-channel distribution network
- Focus on individual customers and customer centric approach
- Consistent profitable growth
- Experienced and stable management and investment teams
Now let us go through the financials of the Company.
HDFC Asset Management Company – Financial Statement
Let’s check some of the important metric to analyse their financial power-
Assets of the Company
|Assets (in Millions)|
Revenue & PAT of the Company
|Revenue & Profits (in Millions)|
|Profit After Tax (PAT)||5,502||4,779||4,155||3,578||3,187|
Earnings per Equity Share
|Earnings per Equity Share (Face Value Rs.5 per Share)|
The Companies growth in terms of Revenue & PAT has been significant. There is a 2x growth in companies revenue in last 5 years & close to 1.7x growth in PAT.
HDFC AMC Promoters
Two large conglomerate are the promoters of HDFC Asset management company. 1st is HDFC & 2nd Standard Life Investments. Both the promoters are extremely big in terms of Brand & Financials & are known to be one of the large firms in their respective country. As on 16th march 2018, HDFC holds 120,772,800 shares & SLI holds 80,515,200 shares i.e. 57.36% & 38.24% respectively of HDFC AMC.
|Standard Life Investments||80,515,200||38.24%|
HDFC AMC IPO Offer Details or IPO issue Details
Check the Table below for detailed understanding of the HDFC AMC IPO Offer:
|Offer||Up to 25,457,555 Equity Shares|
|HDFC AMC Employee Reservation Portion||Up to 320,000 Equity Shares|
|HDFC Employee Reservation Portion||Up to 560,000 Equity Shares|
|HDFC Shareholders Reservation Portion||Up to 2,400,000 Equity Shares|
|Net Offer||Up to 22,177,555 Equity Shares|
|A. QIB Portion||Up to 11,088,776 Equity Shares|
|Anchor Investor Portion||Up to 6,653,265 Equity Shares|
|Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed)||Up to 4,435,511 Equity Shares|
|Available for allocation to Mutual Funds only is 5% of the QIB Portion (excluding the Anchor Investor Portion)||Up to 221,776 Equity Shares|
|Balance of the QIB portion for all QIBs including Mutual Funds||Up to 4,213,735 Equity Shares|
|B. Non-Institutional Portion||Not less than 3,326,634 Equity Shares|
|C. Retail Portion||Not less than 7,762,145 Equity Shares|
The Retail portion of this IPO will be offered & allotted to the individual investors.
HDFC AMC IPO Issue Objects
Following are the Objects of the HDFC AMC IPO issue:
- Achieve the benefits of listing the Equity Shares in the Stock Exchages
- Listing of Shares in the Stock Exchange will enhance the visibility & Brand image of the Company
HDFC Asset Management Company IPO – Basis of Offer Price
The offer price of the IPO is determined by the Company & Selling Shareholders in consultation with BRLMs on the basis of market demand of the equity offered. The Qualitative & Quantitative factors involved while determining the IPO offer price are –
Some of the qualitative factors which form the basis for computing the Offer Price are:
- Consistent market leadership position in the Indian mutual fund industry;
- Trusted brand and strong parentage;
- Strong investment performance supported by comprehensive investment philosophy and risk management;
- Superior and diversified product mix distributed through a multi-channel distribution network;
- Focus on individual customers and customer centric approach;
- Consistent profitable growth; and
- Experienced and stable management and investment teams.
- Basic and diluted earnings per share (“EPS”) i.e. Basic is Rs.24.23 & Diluted is 24.19
- Price/Earning (“P/E”) ratio in relation to Price Band
- Average Return on Net Worth (RoNW) – For 9 months ended Dec, 2017 RoNW was 21.16%
- Minimum return on total net worth after the Offer, required for maintaining pre-Offer EPS as at
December 31, 2017
- Net asset value per Equity Share (face value of Rs.5 each) – Mar, 2017 value was Rs.70.68
- Comparison with listed industry peers
- The Offer price is X times of the face value of the Equity Shares.
HDFC AMC IPO – Lead Managers
|Kotak Mahindra Capital Company Limited|
|Axis Capital Limited|
|DSP Merill Lynch Limited|
|CitiGroup Global Markets India Private Limited|
|CLSA India Private Limited|
|HDFC Bank Limited|
|ICICI Securities Limited|
|IIFL Holdings Limited|
|JM Financial Limited|
|JP Morgan India Private Limited|
|Morgan Stanly India Company Private Limited|
|Namura Financial Advisory & Securities (India) Private Limited|
HDFC Mutual Fund IPO Registrar of the Offer
|Registrar of the Offer|
|Karvy Computershare Private Limited|
HDFC AMC IPO Review by Top Stock Brokers
Here is the tabular representation of IPO review by top equity research firms on 5 major parameters.
|Top Stock Brokers Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
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