HDFC AMC IPO subscribed 75 times till 3.30 pm, Friday (Jul 27, 2018)

New Delhi: The initial public offering by HDFC Asset Management Company received a huge response from investors, as the issue was subscribed 83.05 times on the last of the bidding process on Friday.

The IPO, only the second one from the mutual fund industry, received bids for 1,56,17,60,954 shares against the issue size of 1,88,04,290 shares.

The response has been similar to that of Reliance Nippon AMC, which had been subscribed 81.54 times last October.

Data showed the qualified institutional buyers (QIBs) portion of the HDFC AMC issue has been subscribed 192.26 times, while those of non-institutional individuals over 195.15 times. The retail quota was subscribed 6.714 times.

Angel Broking sees huge growth potential for the mutual fund industry in the years ahead. Strong returns ratios, an asset-light business model, higher dividend payout ratio and a track record of superior investment performance made it give the HDFC AMC issue a 'subscribe' recommendation, it said.

Centrum Broking expects the AMC to retain its leadership position and yield higher profits. "We suggest this IPO to investors with 'high conviction subscribe' rating," it said.

Source: ET Markets.com, Economic Times, Jul 27, 2018