Weekly Task 5

Task: Report on IPO Launch

Team: Chinmayi (B6)
Name: Vijayaa Kanoi
 HDFC (AMC) Ltd. Overview

 Incorporated in 1999, Mumbai based HDFC Asset Management Company (HDFC

AMC) Limited is well-known fund house engaged in providing savings and investment
products. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC) and Standard Life Investments Limited (SLI). SLI is part of Standard
Life Aberdeen plc., one of the world's largest investment company.
 According to CRISIL, as of December 31, 2017, HDFC AMC has been the most
profitable AMC of the country in terms of net profits since
Fiscal 2013 with a total AUM (Assets Under Management) of
Rs 2,932.54 billion. Its profits has grown every year since
2002.
 It has been the largest AMC in equity-oriented AUM since the last quarter of
Fiscal 2011 and has consistently been among the top two asset management
companies in India in terms of total average AUM since the month of August
2008
 HDFC AMC offers a wide range of savings and investment products across asset
classes. As of December 31, 2017, it offered 127 schemes categorized into-
 28 equity-oriented schemes
 91 debt schemes
 3 liquid schemes
 5 other schemes (including exchange-traded schemes and funds of fund
 Objects of the Issue

The objects of the Offer-

 1. To carry out the sale of Equity Shares offered for sale by the Selling
Shareholders.
2. Enhance the company's visibility and brand image,
3. Provide a public market for Equity Shares in India.
 The Company will not receive any proceeds from the Offer and all the
proceeds from the Offer will be received by the Selling Shareholders.
 HDFC AMC IPO Details
IPO Date Jul 25, 2018 to Jul 27, 2018
Listing Date Monday, August 6, 2018
Face Value ₹5 per share
Price ₹1095 to ₹1100 per share
Lot Size 13 Shares
Issue Size 25,457,555 shares of ₹5
(aggregating up to ₹2,800.33 Cr)
Offer for Sale 25,457,555 shares of ₹5
(aggregating up to ₹[.] Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Company Promoters HDFC holds 120,772,800 Equity Shares and Standard Life
Investments, holds 80,515,200 Equity Shares, which
constitutes 57.36% and 38.24%, respectively, of the
Company's pre-Offer, issued, subscribed and paid-up Equity
Share capital.
 HDFC AMC IPO Tentative Timetable
HDFC AMC IPO opens on Jul 25, 2018, and closes on Jul 27, 2018. The HDFC AMC IPO bid date is
from Jul 25, 2018 10.00 A.M. to Jul 27, 2018 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5
PM on the issue closing day.

Event Tentative Date

Opening Date Jul 25, 2018
Closing Date Jul 27, 2018
Basis of Allotment Aug 1, 2018
Initiation of Refunds Aug 2, 2018
Credit of Shares to Demat Aug 3, 2018
Listing Date Aug 6, 2018
 IPO LISITING

HDFC AMC IPO Listing Date HDFC AMC IPO Lot Size
The HDFC AMC IPO lot size is 13 shares. A retail-
Listing Date Monday, August 6, individual investor can apply for up to 13 lots (169
2018 shares or ₹185,900).
BSE Script Code 541729
Applicati Lots Shares Amount
NSE Symbol HDFCAMC
on
Listing In Retail 1 13 ₹14,300
ISIN INE127D01025 (Min)
IPO Price ₹1100 per share Retail 13 169 ₹185,900
(Max)
Face Value ₹5 per share
 HDFC AMC IPO Shares Offered

HDFC AMC IPO is a public issue of 18,804,290 equity shares. The issue offers 7,762,145 shares to retail investors, 4,435,511 shares to qualified institutional buyers, and 3,326,634 shares to non-institutional investors.

Category Shares Offered Amount (Rs Cr) Size (%)

QIB 4,435,511 487.91 23.59%
NII 3,326,634 365.93 17.69%
Retail 7,762,145 853.84 41.28%
Employee 880,000 96.80 4.68%
Others 2,400,000 264.00 12.76%
Total 18,804,290 2,068.47 100%
 Company Financials

Summary of financial Information (Restated)

Particulars For the year/period ended (in Rs. Millions)

31-Dec-17 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13

Total Assets 25,831.58 15,995.90 14,227.17 13,117.50 11,213.36 8,294.39

Total 13,167.21 15,879.10 14,943.42 10,642.76 9,031.14 7,839.76

Revenue

Profit After 4,955.55 5,502.46 4,778.80 4,155.00 3,577.70 3,187.46

Tax
 Valuation Comparison

HDFC AMC Valuation Comparison

Key Ratio HDFC AMC Reliance AMC
Price-to-Earning (x) 32.3 27.1
Price-to-Book (x) 10.8 6.2
Market Cap As % Of 7.8 3.6
Total AUM
 Review

 Looking at the entire Data , We can conclude

that Hdfc AMC is a good buying option , also it
is in a better position as compared to its
competitors