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Journalism of Courage
HDFC Asset Management Company’s shares surged 67 per cent on the first day of trading on Monday, reflecting the bullish investor sentiment on the stock markets and mutual funds which have seen record inflows in recent months.
As against the issue price of Rs 1,100 per share, the HDFC AMC stock zoomed 65 per cent to end at Rs 1,815.15 on the BSE. Earlier in the day, the stock debuted at Rs 1,739, rising sharply by 58 per cent from the issue price. During the day, it advanced by 67.54 per cent to Rs 1,842.95. In terms of equity volume, 30.77 lakh shares of the company were traded on the BSE and over one crore shares changed hands on the NSE during the day.
The company’s market capitalisation stood at Rs 38,479.15 crore on the BSE.
HDFC AMC’s Rs 2,800-crore initial public offer was open during July 25-27. The price band for the offer was fixed at Rs 1,095-1,100 per share. The initial public offer was subscribed 83 times. HDFC AMC’s two biggest shareholders – mortgage lender Housing Development Finance Corp Ltd and Standard Life Aberdeen Plc – sold a combined 12 percent stake in the IPO. HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. It is the second asset management company (AMC) to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year. HDFC AMC has total assets under management of over Rs 3 lakh crore as of March-end this year.
HDFC AMC’s parent, Housing Development Finance Corp , and group company HDFC Bank are among investor favourites. Another group company, HDFC Standard Life Insurance, listed last November and is up nearly 68 per cent from its IPO price. Including the HDFC AMC IPO, Indian companies have raised around Rs 33,000 crore from primary markets so far this year.
