Friday, December 1

HDFC Mutual Fund Gets Sebi Nod For IPO

HDFC Asset Management Company, the country’s largest mutual fund firm, has received Sebi’s go-ahead to float an initial public offer.

The company had filed draft papers with Securities and Exchange Board of India (Sebi) in March and received its “observations” on June 22, as per the latest update with the markets watchdog.

Sebi’s observations are necessary for any company to launch public issues like a rights issue, initial public offer (IPO) and follow-on public offer (FPO).

HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.

Going by the draft papers, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life.

The offer comprises a net offer to the public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees. Besides, 24 lakh shares have been reserved for eligible HDFC shareholders.

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai Maharashtra. It has 84,325 employees and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016.