India’s second largest mutual fund HDFC Asset Management Company made a strong market début on Monday with its stock registering a 58% hike over the issue price in early trade on the National Stock Exchange.
The issue price was 1,100 rupees per share and it got listed at 1,738 rupees and hit a day’s high of 1,825 rupees.
In the Bombay Stock Exchange, the stock made its trading début at 1,818 rupees.
HDFC AMC’s 28-billion-rupee initial public offering was subscribed 83 times on the last day of bidding (July 27) led by demand from non-institutional investors.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. It had total assets under management of over 3 trillion rupees as of the end of March.
Its market share in total industry assets under management stood at 13.7%, and that of actively managed equity-oriented at 16.8%.
It was established as HDFC’s asset management arm in 1999 and in 2001 Standard Life Investments acquired a 26% stake.