HDFC AMC OFS to close today with 82% retail subscriptions
To begin with, the retail portion of the OFS (offer for sale) issue of HDFC AMC seems to have closed. Significantly, June 18th came up as the last day of bidding for subscriptions.
Besides, the retail category has witnessed bids for about 9,87,191 equity shares on the 2nd day. However, their portion remained reserved for around 12 lakh shares. So then, this means that the subscribed portion stands nearly 82.27%. Whereas the non-retail portion has chosen for carrying forward option. Hence, they have received 3,89,561 equity share bids.
Significantly, the reserved portion of 54 lakh shares for non-retailors remained oversubscribed around 2.7 times. Precisely, it has received bids for 1,45,63,767 equity shares for an issue size of 54 lakh shares.
Despite having an additional 54 lakh shares put on sale in case of oversubscription, yet it remained oversubscribed. Hence, the company has fixed its clearing price of Rs. 2,386.10 per share for retail. As well as for non-retail bids of HDFC Asset Management.
According to the sources, the total shares (base size + greenshoe) of 1,20,00,000 came up on the block for sale. So then, the seller has informed the stock exchanges about the intention to exercise the oversubscription. Hence, Mr. Chhitij Jain, Head of Derivatives stated that it can stand ready for sale again on June 18th. Because of the oversubscription that has taken place for non-retail investors.
Besides, in the case of retail investors, the issue size came up of 6,00,000 equity shares. And an additional (greenshoe) option to sell another 6,00,000 equity shares in case of oversubscription. Therefore, the total shares, including the base size and greenshoe, for retailers stood at 12 lakhs.
Earlier, the floor price for the offer remained fixed at Rs. 2,362 per eq. share. While the stock price closed at Rs. 2,414.50 on the BSE on June 17th.
Also, Standard Life Investments, the second promoter of the HDFC AMC, anticipated to sell up to 60 lakh shares through the 2-day issue on June 17th-18th.
However, it also put out an additional 60 lakh shares on the block keeping in mind about the oversubscription. Hence, it intends up to 1.2 crore equity shares. In other words, 5.64% of the total paid-up equity capital of the company remained on the block.
Thus, out of total issue size, 12 lakh shares stood reserved for retail investors and the balanced 1.08 crore shares remained for non-retail investors.