India’s HDFC AMC stock debuts at 58% gain over issue price
The issue price of the country's second largest mutual fund was 1,100 rupees per share but it listed at 1,738 rupees on the National Stock Exchange
India’s second largest mutual fund HDFC Asset Management Company made a strong market début on Monday with its stock registering a 58% hike over the issue price in early trade on the National Stock Exchange.
The issue price was 1,100 rupees per share and it got listed at 1,738 rupees and hit a day’s high of 1,825 rupees.
In the Bombay Stock Exchange, the stock made its trading début at 1,818 rupees.
HDFC AMC’s 28-billion-rupee initial public offering was subscribed 83 times on the last day of bidding (July 27) led by demand from non-institutional investors.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. It had total assets under management of over 3 trillion rupees as of the end of March.
Its market share in total industry assets under management stood at 13.7%, and that of actively managed equity-oriented at 16.8%.
It was established as HDFC’s asset management arm in 1999 and in 2001 Standard Life Investments acquired a 26% stake.