Opportunity for retail stock market investors! HDFC AMC's Issue Of Shares via OFS become available today
HDFC AMC's Issue Of Shares via offer for sale (OFS) has become available for the retail stock market investors.
HDFC AMC's Issue Of Shares via offer for sale (OFS) has become available for the retail stock market investors. Standard Life Investment, one of the two promoters of HDFC AMC, has offered to sell 60 lakh shares or 2.82 per cent stake through OFS. The floor price for OFS was set at Rs 2,362 each, a 6.92 per cent discount to Tuesday's closing price of Rs 2,537.65 per HDFC AMC stocks.
Speaking on the opportunity for the retail stock market investors in regard to the HDFC AMC issue of shares via OFS; Jaikishan Parmar, Sr. Equity Research Analyst at Angel Broking said, “At the cut off rate of OFS, it is offered at 40x FY2020 EPS, demanding a market cap of Rs.50,735cr, which is 13.7% of the MF AUM (Rs.370,113cr for the month of March 2020). Considering that HDFC AMC is the second largest AMC coupled with huge potential of MF industry growth, strong return ratios, asset light business, higher dividend payout ratio and track record of investment performance, we are positive on this OFS and rate it as SUBSCRIBE.”
See Zee Business Live TV streaming below:
The offer for sale opened for subscription by non-retail investors on Wednesday, with 5.4 million shares put on the block, of which bids were received for 14.1 million. According to data from the stock exchanges, the OFS of HDFC AMC shares by Standard Life Investment was subscribed 2.6 times on Wednesday.
In case of oversubscription, Standard Life has proposed to sell another 60 lakh equity shares of the HDFC AMC. In total, Standard Life plans to sell 1.2 crore shares of HDFC AMC, representing 5.64 per cent of total paid-up capital of the company. As per the base offer, the company has set aside 6 lakh shares for retail investors and 54 lakh shares for the non-retail ones. If oversubscribed, the allocation for each category will double, that is 12 lakh shares for retail investors and 1.08 crore shares of non-retail.
As of 31 March, Standard Life Investments held 26.89 per cent stake in HDFC AMC, while HDFC Ltd owned 52.72 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 10 PSU Stocks in 1 Year: Rs 1 lakh investment in top stock has given Rs 5.55 lakh post-tax returns
Gold and Silver rate today (May 23, 2024): Precious metal futures trade under pressure, yellow met below Rs 72,650, white metal near Rs 91,200
Gold and Silver rate today (May 21, 2024): Precious metal futures trade lower; yellow metal futures below Rs 73,750, white metal futures slips over 1%
SIP Investment, 15x20x12 Formula: How investing Rs 20K monthly can build a corpus of Rs 1 crore in 15 yrs | Know Calculation
SBI state bank of india Tax Saver FD With 80C Benefits: Rs inr 500000 investment in 5-year fixed deposit interest rate 2024 reward benefit guaranteed return income tax act nbfc
12:59 PM IST