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HDFC Asset Management Company Limited IPO Review

HDFC Asset Management Company Limited IPO Review

HDFC Asset Management Company Limited is a well-known fund house engaged in providing savings and investment products. It is a Mumbai based company. Today, we are going to discuss HDFC Asset Management Company Limited IPO Review with date, price, issue details, analytical review of the IPO.

About HDFC Asset Management Company Limited IPO :

  • IPO Opens on – July 25, 2018.
  • IPO Closes on – July 27, 2018.
  • Face Value – Rs. 5 Per Equity Share.
  • Issue Price – Rs. 1095 – Rs. 1100 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 13 shares.
  • Minimum Order Quantity – 13 shares.
  • Issue Size – 25,457,555 Equity Shares of Rs 5 aggregating up to Rs 2,800.33 Cr and Offer for Sale of 25,457,555 Equity Shares of Rs 5 aggregating up to Rs [.] Cr.
  • Listing Exchange – BSE NSE.
  • Draft Prospectus – Download.

Objectives of the issue :

  • To carry out the sale of Equity Shares offered for sale by the Selling Shareholders.
  • Enhance this company’s visibility and brand image.
  • Provide a public market for Equity Shares in India.
  • This company will not receive any proceeds from the Offer and all the proceeds from the Offer will be received by the Selling Shareholders.

About The Company –

  • HDFC Asset Management Company Limited is incorporated in 1999.
  • This company is a joint venture between HDFC (Housing Development Finance Corporation Limited) and SLI (Standard Life Investments Limited). This SLI is part of Standard Life Aberdeen plc. and it is also one of the world’s largest investment company.
  • HDFC Asset Management Company (AMC) offers a wide range of savings and investment products across asset classes.
  • This company offered 127 schemes including –
  1. 28 equity-oriented schemes.
  2. 91 debt schemes.
  3. 3 liquid schemes.
  4. 5 other schemes (including exchange-traded schemes and funds of fund schemes).
  • HDFC Asset Management Company Limited also provides portfolio management and segregated account services to HNIs, family offices, trusts, domestic corporates, and provident funds, etc.
  • Strengths of this company are -1. The brand reputation of HDFC and SLI helps in earning the trust of customers.
    2. Consistent investment performance over the years has helped it established itself as one of the leading AMC in the country.
    3. Diversified product mix with a multi-channel distribution network helps it expand its reach.
    4. Strong profitable growth, over the years, provides it with resources to fund future growth.
HDFC Asset Management Company Limited

Promoters of the company :

Promoters of this company are HDFC and Standard Life Investments.

Company Financials :

HDFC Asset Management Company

HDFC Asset Management Company Limited IPO Review :

The above attachment is the financial statement of HDFC Asset Management Company Ltd. HDFC Ltd is one of the most well-established names in the corporate world. Their previous record conveys a strong financial background. Here is past five financial years records and each year the company earned a good amount of profit. In 2017, three-quarters profit was 4,995.55. Therefore, it is expected to have a huge return in FY 2017-18. Now, we will discuss the fundamental details of the company. The details are taken from DRHP( draft red herring prospectus). In FY 2017, basic EPS (Earnings per Share) stands at 27.33. P/E ratio data is not available in the DRHP. RoNW (Return on Net Worth) is 38.67 and NAV/Share (Net Asset Value Per Share) is 70.68 in the year 2016-17.

I hope you heard about NSE bid details. Besides this financial data, if you want to sure about the ratings of the IPO, you can check the bid details on the last day of application. In order to know the applying steps, you can go through the article “understanding the steps to apply” You can also check the Grey Market Premium, this will help you to analyze the IPO to some extent. However, there is no doubt that HDFC Asset Management Company Limited IPO Review carries a POSITIVE review. It is advisable to invest in this IPO on medium to long-term. Hence, the IPO obviously comes under “MUST BUY” section.

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