HDFC to pare over 4% stake in asset management arm through IPO
New Delhi: Mortgage lender Housing Development Finance Corp. Ltd (HDFC) on Tuesday said it will sell over 4% stake in its asset management arm HDFC Asset Management Co. Ltd (HDFC AMC) through an initial public offer (IPO).
It said in a regulatory filing that the committee of directors set up by the HDFC board has approved offering up to 8,592,970 equity shares of HDFC AMC at Rs5 each, representing 4.08% of the paid-up share capital, for sale in the IPO.
Last November, HDFC had approved the IPO of HDFC AMC. The HDFC board had approved to offer part of its shares held in HDFC AMC to the public in one or more tranches so that its holding remains at least 50.01% in the AMC arm.
HDFC AMC had earned total revenues of Rs1,588 crore last fiscal ended March 2017, while its net profit was at Rs550 crore. HDFC held 59.99% shares in its asset management arm by the end of March 2017.
At the end of the second quarter ended September of the current fiscal, HDFC’s sake in HDFC AMC was at 57.36%. HDFC said HDFC AMC will continue to be its subsidiary post-IPO. The HDFC stock was trading 1.11% up at Rs1,875.60 on BSE.
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