HDFC AMC IPO fully subscribed on Day 1

The initial public offer of HDFC Asset Management Company was fully subscribed on the first day of bidding itself following robust demand from investors.

The mutual fund firm's Rs 2,800-crore public offer received bids for 1,93,96,884 shares against the total issue size of 1,88,04,290 shares, translating into 1.03 times subscription, as per NSE data.

The category reserved for qualified institutional buyers (QIB) was subscribed 1.19 times, non institutional investors 55 per cent and retail investors 1.34 times.

Ahead of its IPO, HDFC Asset Management Company yesterday garnered Rs 732 crore from anchor investors.

The IPO is of 2,54,57,555 shares, including anchor portion of 66,53,265 shares.

HDFC AMC operates is a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

Price band for the offer, which will close on Friday, has been set at Rs 1,095-1,100 per share.

At the upper end of the price band, the public issue is expected to raise Rs 2,800 crore.

HDFC AMC has a total asset under management of over Rs 3 lakh crore as of March end.

It is the second AMC to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.

Kotak Mahindra Capital, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, J P Morgan India, Morgan Stanley India and Nomura Financial Advisory are managing the issue.