On Monday, HDFC Asset Management Company share prices started off trade on strong market debut. It has jumped more than 65% on the bourses. HDFC AMC shares opened 58.09% higher on the BSE at Rs 1739 a piece on the NSE, compared to the issue price of Rs 1,100 after the Rs. 2,800 crore IPO was subscribed more than 83 times last month.
The scrip was trading 63.89 % higher and crossed Rs 1,811 levels on the exchange and hit a day’s high of Rs 1,825. At 10:04 hours IST, in Intraday trade, it was trading as much as by 65.55% or Rs 721 at Rs 1,821.
On the BSE, the stock was trading at Rs 1,807, up by 64.27% or Rs 705 after hitting day’s high of Rs 1,832.
The Rs 2,800 crore initial public offering (IPO) was sold between 25 and 27 July and was subscribed 83 times. This was strikingly similar to the response received by the issue of peer firm Reliance Nippon Asset Management for its Rs 1,542 crore issue last year.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation and Standard Life Investments lowering their shareholding via this IPO. Its market share in total industry AUM stood at 13.7%, and that of actively managed equity-oriented at 16.8%. The IPO valued the company at Rs23,319 crore.
According to the past records of the last 5 years, HDFC’s has created enormous wealth for shareholders and has been a defensive play in the market. All HDFC Group companies trade at premium valuations as so in case of HDFC AMC.
HDFC AMC had total assets under management of over Rs 3 lakh crore as of March-end. The AMC’s equity-oriented AUM to total AUM was at 51.3 % at the end of FY18, higher than the industry average of 43.2%. The AMC has 209 branches and a network of over 65,000 distributors.
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