HDFC AMC's Rs 28 bn IPO to open on July 25 at Rs 1,095-1,100 per share

The price band for the initial public offering (IPO) of HDFC Mutual Fund has been set at Rs 1,095 to Rs 1,100 per share. The three-day IPO will open for subscription on July 25, parent HDFC said in a statement on Tuesday. A total of 25.4 million shares belonging to HDFC and Standard Life are being put on the block in the IPO.

At the top-end, the issue size works out to Rs 28 billion. The IPO size is 20 per cent lower than widely-reported figure of Rs 30 billion.  The IPO will value HDFC MF, which manages assets worth over Rs 3 trillion, at Rs 233 billion. Reliance Nippon MF, which manages assets worth Rs 2.4 trillion, is valued at Rs 136 trillion.

HDFC, which holds 57.3 per cent, will see its stake reduce to 53.2 per cent following the IPO. UK’s Standard Life, which holds 38.2 per cent, will see its stake drop to 30.2 per cent. In April, HDFC MF had made a pre-IPO share allotment of 1.44 million shares to distributors at Rs 1,050 apiece. Following objections raised by market regulator Sebi, the shares were transferred to private equity major KKR.