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.