Mortgage lender HDFC Ltd today said it will sell over 4 per cent stake in its asset management arm HDFC AMC through 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 85,92,970 equity shares of Rs 5 each of HDFC AMC, representing 4.08 per cent of the paid-up share capital, for sale in the IPO.
Last November, the Housing Development Finance Corporation had approved the IPO of HDFC Asset Management Company Ltd (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 per cent in the AMC arm.
HDFC AMC had earned total revenues of Rs 1,588 crore last fiscal ended March 2017, while its net profit was at Rs 550 crore.
HDFC held 59.99 per cent shares in its asset management arm by the end of March 2017.
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At the end of the second quarter ended September of the current fiscal, HDFC's sake in HDFC AMC was at 57.36 per cent.
HDFC said HDFC AMC will continue to be its subsidiary post-IPO.
The HDFC stock was trading 1.11 per cent up at Rs 1,875.60 on BSE.