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Investors rushed to get a share of HDFC Mutual Fund, the country's most profitable badet manager, with an inaugural offer witnessing more than 80 times of the proposed shares. The offer of 18.8 million shares received bids for 1.56 billion shares worth 1.72 trillion rupees. Investment bankers said it was the second highest demand ever seen for a domestic initial public offering (IPO) after Coal India. The mega-bid of Rs 155-billion state miner in 2010 had seen bids worth Rs 2 trillion. The IPO of Avenue Supermarkets last year had generated offers worth 1.4 trillion rupees. The 18.7 billion rupiah IPO of the operator of the D-Mart chain of stores has been subscribed more than 100 times. The IPO of 28 billion rupees of HDFC MF was entirely an offer for sale by the parent company Housing Development Finance Corporation (HDFC) and Standard Life of the United Kingdom, which respectively bought 4.05% and 7.96% of the shares.
(QIB) were subscribed 192 times, while those intended for high net worth individuals (HNI) were 195 times subscribed. The retail quota has been underwritten almost seven times
"There were three main reasons behind the success of HDFC's high pedigree MF IPO-parent HDFC; the large HDFC MF's equity base and attractive prices" , said V Jayasankar, head of equity markets, Kotak Mahindra Capital, one of the bankers of the issue
ALSO READ: HDFC MF IPO subscribed 5.5 times on day 2, receives offers for 103 minutes of shares
HDFC MF manages badets worth 3 trillion rupees, of which about 51% are shares .HDF MF is the second largest fund house in the country in global badet terms and the largest in terms of stock-oriented badets.
"After demonetization, the mutual fund industry has experienced strong growth. Is a good industry to be part of and HDFC MF is the leader.In addition, the company comes to e HDFC stable group that has made a lot of money for investors, "said Salil Pitale, co-head of the investment bank, Axis Capital, one of the 11 banks that managed the sale of shares. under management (ASG) for the mutual fund industry has nearly doubled in the last two years, from Rs 12 trillion at the end of 2015-2016 to Rs 23 trillion at the end of 2017-2018. The increase in the share of financial badets in household savings and the growing preference for mutual funds gave a boost to this growth
ALSO READ: HDFC MF IPO oversubscribed on day 1, receives bids for 19.4 million shares
Brokers have recommended their customers to subscribe to the MF HDFC offer.
"Huge potential for growth of the MF industry, solid yield ratios, light badets, a higher dividend payout ratio and superior performance," said Angel Broking in a memo [19659002TheIPOpricerangewasRs1095toRs1100pershareAt1100RsHDFCMFisvaluedat32timesits2017-18earningsand11timesits2017-2018bookvalueThemarketvalueofthefundhouseis76percentofitsbadetsundermanagement
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