HDFC AMC Ltd
, the second largest AMC in India, surged 65% to close at Rs1,815.5 on the BSE today. The company made a stellar debut on the stock exchanges, listing at Rs1,735/share, a premium of 57.7% over the issue price of Rs1,100 on BSE.
The shares of the HDFC arm jumped as high as Rs1,842.95 in intra-day trades today, registering an increase of ~68% from its issue price before settling at Rs1,815.5 at the close of trades on BSE. The stock witnessed second highest listing gains in the 2018 and 6th highest since 2011, data showed.
Nearly all of HDFC group companies trade at premium valuations, a fact which is mirrored by its AMC arm as well. HDFC AMC is a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. HDFC AMC is the second-biggest mutual fund manager in the country with Rs3.07lakh crore worth of assets under management in the June quarter.
HDFC AMC's Rs2,800cr IPO was open from July 25 -27, 2018 and the price band for the offer was fixed at Rs1,095-1,100/share.
HDFC's AMC arm had offered 2.54cr shares and the issue had generated huge interest among investors, with the lot being subscribed 83x.
The AMC's equity-oriented AUM to total AUM at 51.3% is much higher than the industry average of 43.2%. The AMC has 209 branches and a network of over 65,000 distributors.