HDFC AMC Limited IPO
Important Information related to HDFC AMC IPO or HDFC Mutual Fund IPO
(i) HDFC AMC (Asset Management Company) Limited (AMC), also known as HDFC Mutual Fund, was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.
(ii) The Company has been the most profitable asset management company in India in terms of net profits since Fiscal 2013, with a total AUM of ₹2,932.54 billion as of December 31, 2017 of which equity-oriented AUM and non-equity-oriented AUM constituted ₹1,552.82 billion and ₹1,379.72 billion.
(iii) The company has been the largest asset management company in India in terms of Equity-oriented AUM since the last quarter of Fiscal 2011 and have consistently been among the top two asset management companies in India in terms of total average AUM since the month of August 2008.
(iv) The AUM has grown at a Compounded Annual Growth Rate (“CAGR”) of 27.1% between March 31, 2013 and December 31, 2017. The proportion of equity-oriented AUM to total AUM was at 53.0%, which was higher than the industry average of 44.1%, as of December 31, 2017.
(v) The company has an established track record of delivering robust financial performance. The total Revenue increased from ₹7,83.976 Cr in Fiscal 2013 to ₹15,87.910 Cr in Fiscal 2017, with a CAGR of 19.3%, and the Net profit has grown from ₹3,18.746 Cr to ₹5,50.246 Cr during the same period at a CAGR of 14.6%. The Dividend Payout Ratio increased from 40% in Fiscal 2013 to 51% in Fiscal 2017 and they have paid a dividend of ₹2,31.535 Cr in Fiscal 2017 compared to ₹1,11.060 Cr in Fiscal 2013.
a) Consistent market leadership position in the Indian mutual fund industry.
Trusted brand and strong parentage.
b) Strong investment performance supported by comprehensive investment philosophy and risk management.
c) Superior and diversified product mix distributed through a multi-channel distribution network.
d) Focus on individual customers and customer-centric approach.
e) Consistent profitable growth.
f) Experienced and stable management and investment teams.
Objects of the HDFC AMC Limited IPO:
HDFC AMC Limited IPO Details:
|Open Date:||Jul 25 2018|
|Close Date:||Jul 27 2018|
|Face Value:||₹ 5 Per Equity Share|
|Issue Size:||2800 Cr.|
|Lot Size:||13 Shares|
|Issue Price:||₹ 1095-1100 Per Equity Share|
|Listing Date:||Aug 06 2018|
Promoters And Management:
|(i) Authorized Share Capital a) 600,000,000 Equity Shares of ₹5 each||300 Cr|
|b) 50,000,000 preference shares of ₹10 each||50 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue 210,555,200 Equity Shares of ₹5 each||105.2 Cr|
|(iii) Present Issue OFS to public ( 25,457,555 Shares at FV@5)||12.72 Cr|
|Which Includes a) HDFC AMC Employee Reservation of 320,000 Equity Shares FV@5||1.25%|
|b) HDFC Employee Reservation of 560,000 Equity Shares FV@5||2.19%|
|c) HDFC Shareholders Reservation of 2,400,000 Equity Shares FV@5||9.42%|
|(iv) Reservation for QIB [11088777 no. of Shares]||43.5%|
|(v) Reservation for HNI[3326633 no. of Shares]||13%|
|(vi) Reservation for Retail[7762144 no. of Shares]||30%|
|(vii) Paid Up Share Capital after the issue||105.2 Cr|
Financials of HDFC AMC Limited IPO as per DRHP:
|1. Assets and Liabilities Key Parameters[STANDALONE]|
|Year||Asset(Cr)||Liabilities(Cr)||Net Worth(Cr)||Book Value||D/E [<1.5]||RONW||debtor days|
|2. Profit n Loss Key Parameters[STANDALONE]|
|Year||Revenue(Cr)||PAT(Cr)||EBITDA Margins||Profit Margins||Outstanding Shares( Cr)||EPS|
|3. Cash Flow Statement(all figures in Cr)[STANDALONE]|
|(i) Net Cash Generated from Operation||454.86||742.02||94.824||209.47||312.28|
|(ii) Net Cash Generated from Investment||-176.03||-297.07||103.57||-50.801||-94.101|
|(iii) Net Cash Generated from Financing Activity||-278.53||-446.55||-196.87||-158.51||-219.05|
|(iv) Total[ (i)+(ii)+(iii) ]||0.29||-1.59||1.53||0.16||-0.87|
Comparison With Peers:
|Name of the Company||FV||Revenue/AUM||Mcap(cr)||P/E||RONW||Mcap/sales||NPM|
Recommendation on HDFC AMC Limited IPO:
Lead Manager of HDFC AMC Limited IPO:
- Axis Capital Limited
- BoA Merrill Lynch
- Citigroup Global Markets India Private Limited
- CLSA India Private Limited
- HDFC Bank Limited
- ICICI Securities Limited
- IIFL Holdings Limited
- J.P. Morgan India Private Limited
- JM Financial Consultants Private Limited
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- Nomura Financial Advisory And Securities (India) Private Limited