Why Bullish on HDFC AMC IPO - hdfc mutual fund IPO review and analysis

HDFC Asset Management review and analysis. 

IPO Details: 
Issue Open : Jul 25, 2018 - Jul 27, 2018 

Issue Size   : 25,457,555 Equity Shares, 
                      aggregating up to Rs 2,800.33 Cr 
Face Value : Rs 5 Per Equity Share 

Issue Price : Rs 1095 - Rs 1100 Per Equity Share 

Market Lot : 13 Shares 
Listing At : BSE, NSE 


About Company: 
1.HDFC Asset Management Company Ltd (AMC) was incorporated in 1999, and it was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. 
2.In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is approx. Rs. 1052.77 million as on March 15, 2018 

3. HDFC AMC has been the most profitable asset management company in India in terms of net profits since Fiscal 2013, according to CRISIL 


Strengths: 
1.Brand reputation of HDFC 
2.Consistent investment performance over the years 
3.Diversified product mix 
4.Strong profitable growth, over the years 
5. HDFC AMC offers a wide range of savings and investment products across asset classes. 

• 28 equity-oriented schemes 
• 91 debt schemes 
• 3 liquid schemes 
• 5 other schemes 

Comparison: 

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Profits: 

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Should we invest: 
1.HDFC group company is always favourite of foreign institutional investor. 72% holding in HDFC. 
2.Favourite of Mutual funds 
3.Clean management. 
4.Most profitable company 
5.HDFC group listing there company on long duration like Gruh finance(1992), HDFC bank(1995), HDFC std life(2017), & all given very good returns. 
6.Favourable perception of HDFC AMC’s brand 
7.Higher mix of high-margin equity assets than the industry average, consistent return on equity (ROE) of 40 per cent since the past five years, 
8.A wide distribution network, and increasing dividend payouts work in the company’s favour. 


Risks! 

1.If stock Market crashes for longer duration then people may stop investment in MF SIPs and might also take out money from funds. That may impact on their earning. 

2.If any Govt introduces new rule on FII investment . 


Opinion: 
Good for Listing gain and for long term 

GMP of HDFC AMC 360 on 19th Jul 

“We don’t have a single company in our group where investors have lost money so far and we don’t want that to happen with this issue.” 
: Deepak Parekh, Chairman, HDFC Ltd.