Promoters to dilute 12.01 per cent in HDFC AMC in Rs 2,800-crore IPO

While main promoter HDFC will dilute 4.08 per cent to the public through the offer, foreign partner Standard Life will sell 8.1 per cent of its holding in the fund house that is the largest among the private players when it comes to equity investment.

Post-issue, excluding reserved portion for employees and shareholders, HDFC’s shareholding will come down to 52.92 per cent from 56.97, while that of Standard Life will be down from 37.98 to 30.03 per cent. 

Deepak Parekh, the chairman of HDFC Group, said the offer and the net offer constitute 12.01 per cent and 10.46 per cent of post-offer paid-up equity capital, respectively.

He said with the AMC listing, the HDFC group has five publicly traded companies - HDFC, HDFC Bank, HDFC Life and Gruh Finance.

But Parekh ruled out listing of the general insurance arm, HDFC Ergo, in the medium term, saying the company needs to grow much bigger for a public float.

The promoters will sell up to 25,457,555 equity shares of face value of Rs 5 each for cash through an offer for sale of up to 8,592,970 shares by HDFC and up to 16,864,585 shares by Standard Life Investments, he said. 

The offer, that closes on July 27, comprises a net offer to the public of up to 22,177,555 shares, a reservation of up to 0.15 per cent of the post-offer paid up equity capital for its employees; 0.26 per cent for HDFC employees, up to 1.13 per cent for HDFC shareholders.

HDFC Mutual Fund has for long been the most profitable fund house in the country in terms of net profit since fiscal 2013. As of March 2018, its AUM stood at Rs 2.92 trillion, of which 62 per cent or Rs 1.5 trillion is by retail investors, making it the largest in this category.

With 13 per cent market pie, HDFC AMC is the second largest fund house in the private  sector, just behind ICICI Prudential AMC which has 13.3 per cent market share.