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HDFC AMC OFS closed today, retail portion subscribed 82%

On Thursday HDFC Asset Management Company’s offer-for-sale (OFS) which is promoted by Standard Life Investments closed with retail investors subscribing 82 per cent of the reserved portion.

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As per the data available with the National Stock Exchange, Retail investors on Thursday bid for 9,87,191 shares against a total of 12 lakh shares on offer, translating into 82 per cent of the subscription.

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Additionally, the non-retail category opted for ‘carry forward’ and they received bids for 3,89,561 shares.

OFS stimulated a vigorous response from non-retail investors on Wednesday and the category got subscribed for 2.6 times on Wednesday. And finally, the two-day long OFS mechanism slammed on Thursday.

Meanwhile, Standard Life offered to sell a total of 60 lakh shares that accounted 2.82 per cent of its total stake, through the OFS. However, the floor price for the OFS was fixed at Rs 2,362 each with a 6.92 per cent discount to the closing price of Rs 2,537.65 on Tuesday.

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During the event of oversubscription, Standard Life further planned to sell another 60 lakh equity shares. Making an overall offload of 1.2 crore equity shares that is 5.64 per cent stake of the fund house.

The promoter is selling the shares in order to achieve the minimum public shareholding in the company which was prescribed under markets regulator Sebi’s norm.

HDFC Asset Managing Company works as a unification between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

In December last year, the Standard Life had sold 47.5 lakh equity shares, OFS accounting 2.23 per cent stake, of HDFC Asset Managing Company by way of offer-for-sale.

However, in March 2020, Standard Life held 26.89 per cent stake in the mutual fund house, and HDFC owned 52.72 per cent.

Accounting for July 2018, HDFC Asset Managing Company had hit the capital markets through its initial public offering and raised an estimated Rs 2,800 crore.

 

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