The Securities and Exchange Board of India (Sebi) has kept the proposed initial public offering (IPO) of HDFC Asset Management Company in abeyance “for examination of past violations”, according to the April 27 update on the website of Sebi. The regulator, however did not disclose the nature of violations that it is examining.
The fund house had filed preliminary papers with Sebi in March, seeking approval to float an IPO. The company has appointed Nomura Financial Advisory and Securities (India), Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley to manage the its public issue.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation and Standard Life Investments. According to the draft papers, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life Investments.
The offer comprises a net offer to public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees.