About the Company:
HDFC Asset Management Company is the most profitable asset management company in India in terms of net profits since Fiscal 2013, with a total AUM of Rs.2,93,200 crores ($45 billion) as of December 31, 2017.
Company operates as a joint venture between Housing Development Finance Corporation Limited (“HDFC”) and Standard Life Investments Limited (“SLI”).
They offer a large suite of savings and investment products across asset classes, which provide income and wealth creation opportunities to their customers.
They also provide portfolio management and segregated account services, including discretionary, non-discretionary and advisory services, to high net worth individuals (“HNIs”), family offices, domestic corporates, trusts, provident funds and domestic and global institutions.
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.
As of December 31, 2017,Company’s equity-oriented AUM and non-equity-oriented AUM constituted Rs.1,55,200 crores ($23.8 billion) and Rs.1,37,900 crores ($21 billion) respectively, of their total AUM.
Company’s 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%.
Company has received several awards for their operations, such as the Equity Fund House of the year award for 2017 at the Outlook Money Awards in 2018.
About HDFC Group.
HDFC is one of India’s leading housing finance companies. HDFC group has emerged as a recognized financial conglomerate in India, with presence in housing finance, banking, life and nonlife insurance, asset management, real estate funds and education finance.
Listed companies of the HDFC group include HDFC Limited, HDFC Bank Limited, HDFC Standard Life Insurance Company Limited and GRUH Finance Limited.
About Standard Life Investments Ltd (SLI):
SLI is part of Standard Life Aberdeen plc (“Standard Life Aberdeen”) which is one of the world’s largest investment companies, created in 2017 from the merger of Standard Life plc and Aberdeen Asset Management plc.
SLI operates within the brand Aberdeen Standard Investments, with its investment arm managing £575.7 billion of assets as of December 31, 2017, making it one of the largest active managers in Europe.
- Mr.Deepak Parekh (Designation: Non-executive Director and Chairman)
- Mr.Keki Mistry Designation: Non-executive Director (Nominee of HDFC)
- Mr.Milind Barve (Designation: Managing Director)
Promoters Average Acquisition Cost:
|Name of the Promoter||No. of Shares held||Average Acquisition Cost (in Rs.)|
|Standard Life Investments||80,515,200||15.01|
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake (%)|
|Standard Life Investments||38.24%||30.23%|
|Promoter Group Entities||NIL||NIL|
Objectives of the Issue:
OFS (Offer For Sale): (Rs 2800 crore)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Companys Main Competitors:
- ICICI Prudential Asset Management Company Ltd
- Reliance Nippon Life Asset Management Company Ltd
- Aditya Birla Sun Life AMC Ltd
- SBI Funds Management Private Ltd
- UTI Asset Management Company Ltd.
Positives for the Company:
Consistent Market Leadership Position in the Indian Mutual Fund Industry.
Company has been a leader in the Indian mutual fund industry as demonstrated by their leading position across key industry metrics.
They have been the most profitable asset management company in India in terms of net profits since Fiscal 2013, according to CRISIL, and had a total AUM of Rs.2,93,200 crores ($45 billion) as of December 31, 2017.
Company’s AUM has grown at a CAGR of 34.5% since Fiscal 2001.
Trusted Brand and Strong Parentage.
HDFC group has a strong presence across financial products and services, especially in the retail sector.
Company benefits from HDFC’s brand name as it gives them a unique advantage of being a trusted provider of financial services, and SLI provides access to international best practices, for operations and risk management.
Strong Investment Performance.
Company’s consistent position as one of India’s leading asset management companies is driven by their comprehensive investment philosophy and investment performance.
The following table shows the performance of their top equity-oriented schemes as of December 29, 2017.
Superior and Diversified Product mix distributed through a Multi-Channel Distribution Network.
Company has a diversified product mix, which includes 28 equity-oriented schemes, 91 debt schemes (including 65 FMPs), three liquid schemes, and five other schemes (including exchange-traded and funds of fund schemes).
They serve customers in over 200 cities through pan-India network of 183 branches (and a representative office in Dubai) and service centres of their registrar and transfer agent (“RTA”), which is supported by a strong and diversified network of over 60,000 empaneled distribution partners across India
Financials of the Company:
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||31st Dec 17|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|HDFC Asset Management Company Ltd||5||27.05||40.66||38.67%||70.68|
|Reliance Nippon Life Asset
|Issue Opens on||25th July 2018|
|Issue Closes on:.||27th July 2018|
|Issue Price||Rs.1095 – 1100|
|Minimum Lot||13 shares|
|Issue Size||Rs. 2800 cr ($405 million)|
|Market Cap||Rs.23161 cr ($3.35 billion)|
|Listing at||NSE & BSE|
|Total Equity Shares Offered (OFS)||2,54,57,555|
|Equity Shares Prior to the issue||21,05,55,200|
|Equity Shares after the Issue||21,05,55,200|
|Finalization of Basis of Allotment||on or before 1st August 2018|
|Initiation of Refunds||on or before 2nd August 2018|
|Credit of Equity Shares:||on or before 3rd August 2018|
|Listing Date:||on or before 6th August 2018|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
|Reservation Portion Shareholder||24,00,000||0.60||1.40||2.65|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
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|Company Contact Info:|
|HDFC Asset Management Company Limited
HDFC House, 2nd Floor
H. T. Parekh Marg
165-166, Backbay Reclamation
Churchgate, Mumbai 400 020
Telephone: +91 (22) 6631 6333
Facsimile: +91 (22) 6658 0203
|IPO Registrar Info:|
|Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District,
Hyderabad 500 032, India.
Telephone: +91 (40) 6716 2222
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