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  • MF News HDFC AMC to reserve7.2 lakh shares for its distributors

    HDFC AMC to reserve7.2 lakh shares for its distributors

    Now you can become a partner in HDFC AMC.
    Padmaja Choudhury Mar 16, 2018

    So far, you have distributed schemes of HDFC Mutual Fund. Now, with the HDFC AMC’s IPO around the corner, you can become a shareholder of the company.

    HDFC AMC has reserved up to 7.2 lakh shares for its empanelled distributors.  

    “Our company may undertake a reservation of up to 720,000 equity shares in favour of empanelled distribution partners of our company in India, subject to regulatory approvals,” according to the draft offer document.

    The asset management has filed its draft offer document with SEBI today.

     “As of December 31, 2017, approximately 68.2% of our total AUM was because of third party distribution channels, such as IFAs, national distributors and banks. As these distribution channels become increasingly important in our industry, any failure to secure new distribution relationships or maintain our existing relationships, our competitiveness may be adversely affected. As many of our distribution relationships are non-exclusive, our distributors may provide similar services to our competitors or prioritize our competitors’ investment product over ours, which could have a material adverse impact on our revenue and results of operations,” the draft offer document stated.

    Currently, the fund house has 60,000 empanelled distribution partners across India.

    Overall, the AMC will offer 2.5 crore equity shares through its IPO. The quantum of funds that they will raise is yet to be decided. However, the IPO may get a valuation of Rs.30,000 crore and the price band may be set at Rs.1,400-Rs.1,500 a share, said a media report.

    With this, HDFC Mutual Fund will be the third asset management company to be listed. Reliance Nippon Life Asset Management was listed in November 2017 while Shriram AMC, the first listed AMC in India, is no longer listed.

     

     

     

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    17 Comments
    Navin · 6 years ago `
    It's nice ,very good decision of hdfc AMC ,they will think of distributor
    Pappu Kumar · 6 years ago `
    Very good decision. Thanks
    Prahlad Ajitsaria · 6 years ago `
    Very useful updates
    P K Sinha · 6 years ago `
    Thanks, HDFC Management keep their promises. All the best wishes to team HDFC
    Prashant · 6 years ago `
    Why is everyone so happy about this is a big question. They are benefitting themselves and not us by doing this. They have the biggest say in AMFI and they would support RIA because they want to save on extra brokerage. This just to show that they are with us whereas actually they are not. We need vision not eyes only. Please open your eyes and see the big picture and stand united and fight or else we will all perish.
    Santosh Chaurasia · 6 years ago
    Dear Prashant, I understand it big threat for distributor community but actual truth is that today there is big challange for distributors due to RIA promotion and direct fund even Regulator want to reduce the brokerage to minimum extent. So whatever HDFC is doing nothing wrong it's in interest of investor so only option to accept it
    Reply
    rajeev · 6 years ago `
    price is very high .good if reasonable
    Praveen · 6 years ago `
    It's like they are throwing crumbs to make us happy. Also there is no allotment guaranteed. Plus they have always squeezed the small distributors in favor of banks and NDS. Nothing to feel happy about.
    rajesh · 6 years ago `
    don't buy.. buy after NFO opens and market falls
    rajesh · 6 years ago
    EDIT_ Don't Buy... Buy after IPO opens and market falls..
    Reply
    SRINIVASAN V · 6 years ago `
    very glad to note . is there any special form for distributors. Whether we can apply in online. please let us know
    Amit Partani · 6 years ago `
    Great feel
    LOGANATHAN · 6 years ago `
    A Welcome move.But every willing IFA should be ensured allotment of atleast minimum number of shares.
    SAMIRAN BISHNU · 6 years ago `
    My ARN 7209 IS EXPIRED I WANTED TO RENEW IT ALONG WITH ANOTHER ARN 7218 MY WIFE JHULAN BISHNU DAS MY WIFE UNDER NISM V,-1 SERIS.PLEASE SUGGEST HOW CAN WE SIT IN MANUAL TEST?
    Santosh · 6 years ago
    Register again for test then renew
    Reply
    Amaresh Chakraborty · 6 years ago `
    Good decision. Thanks
    Mathaiyan M · 6 years ago `
    Thanks to Hdfc . I hope every IFA will avail this opportunity.
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