HDFC AMC surges 67% on market debut

New Delhi: HDFC Asset Management Company, that saw overwhelming response among investors, for its initial public offer, surged surged as much as 67 percent on its market debut on Monday.

Shares of the company rose to a high of Rs 1,835 rupees, way above the IPO issue price of Rs 1,100. On NSE, shares of the company opened at Rs 1,726.25, zooming 56.93 percent.

The initial public offer of HDFC AMC was subscribed 83 times on the last day of bidding on July 27.

The Rs 2,800-crore IPO received bids for over 156 crore shares against the total issue size of more than 1.88 crore shares. The category set aside for qualified institutional buyers (QIBs) was subscribed 192.26 times, non institutional investors 195.15 times and retail investors 6.61 times, merchant banking sources said.

The public offer comprised of 2,54,57,555 shares, including anchor portion of 66,53,265 shares.

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. Price band for the offer was set at Rs 1,095-1,100 per share.

HDFC AMC has total assets under management of over Rs 3 lakh crore as of March end.

It is the second asset management company to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.

Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, J P Morgan India, Morgan Stanley India Company and Nomura Financial Advisory and Securities are managing the issue.

With PTI Inputs