HDFC Asset Management Company Limited: Initial Public Offer to open on July 25, 2018 and to close on July 27, 2018

Milind Barve, MD, HDFC AMC

 HDFC Asset Management Company Limited (the “Company” or “Issuer”), proposes to open an initial public offering of up to 25,457,555 equity shares of face value of Rs. 5 Each (“Equity Shares”) for cash through an offer for sale of up to 8,592,970 Equity Shares by Housing Development Finance Corporation Limited and up to 16,864,585 Equity Shares by Standard Life Investments Limited (together, “Promoter Selling Shareholders” and such offering, the “Offer”). The Offer comprises a Net Offer to the Public of up to 22,177,555 Equity Shares (“Net Offer”), a reservation of up to 320,000 Equity Shares (constituting up to 0.15% of the post-Offer paid up Equity Share Capital) for purchase by the Eligible HDFC AMC Employees (as defined In “Definitions and Abbreviations”) (“HDFC AMC Employee Reservation Portion”), a reservation of up to 560,000 Equity Shares (constituting up to 0.26% of the post-Offer paid up Equity Share Capital) for purchase by the Eligible HDFC Employees (as defined in “Definitions and Abbreviations”) (“HDFC Employee Reservation Portion”) and a reservation of up to 2,400,000 Equity Shares (constituting up to 1.13% of the post-Offer Paid Up Equity Share Capital) for purchase by Eligible HDFC Shareholders (As defined In “Definitions and Abbreviations”) (“HDFC Shareholders Reservation Portion”). The Offer and the Net Offer shall constitute 12.01% and 10.46% of the Post-Offer Paid-Up Equity Share Capital of the Company, respectively.

The Bid/Offer Period closes on July 27, 2018. The Company and the Promoter Selling Shareholders in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Offer Opening Date; i.e., July 24, 2018.

The Price Band for the Offer is from Rs. 1,095 to Rs. 1,100 per Equity Share. Bids can be made for a minimum lot of 13 Equity Shares and in multiples of 13 Equity Shares thereafter.

The Equity Shares are proposed to be listed on BSE and NSE.

The Book Running Lead Managers (“BRLMs”) to the Offer are Kotak Mahindra Capital Company Limited, Axis Capital Limited, DSP Merrill Lynch Limited, Citigroup Global Markets India Private Limited, CLSA India Private Limited, HDFC Bank Limited, ICICI Securities Limited, IIFL Holdings Limited, JM Financial Limited, J. P. Morgan India Private Limited, Morgan Stanley India Company Private Limited and Nomura Financial Advisory and Securities (India) Private Limited.

 

The Offer is being made through the Book Building Process and in accordance with Regulation 26(1) of the ICDR Regulations, wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”), provided that the Company and the Promoter Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer shall be available for allocation on a proportionate basis to Retail Individual Investors, in accordance with the ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in this Offer. Anchor Investors are not permitted to participate in the Offer through the ASBA process.

 

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