HDFC Asset Management Company has received SEBI approval for launching its initial public offering. Depending on the market condition, the AMC will decide on the issue date, said sources.
The market regulator SEBI had issued its final observations on June 22, paving the way for launch of the IPO, the source added.
The IPO will lead to dilution of stake by the promoters of HDFC MF — HDFC and UK-headquartered Standard Life. Both currently hold 57 per cent and 38 per cent stake, respectively.
While HDFC will offload four per cent its stake, Standard Life is selling 8 per cent of its holding to mop-up about ₹3,500-3,800 crore. The maiden offering values the asset manager at ₹30,700 crore.
HDFC MF IPO will be the second AMC after Reliance Nippon MF to hit the market. HDFC MF currently manages assets worth over ₹3 lakh crore, making it the second-biggest fund house in the country after ICICI Prudential MF.
Consent plea
Earlier, the fund house filed a consent plea with the Securities and Exchange Board of India in a case pertaining to alleged front running of trades by an ex-employee and violation of securities laws to get the market regulator permission to launch the IPO.
The market regulator cleared the IPO after HDFC Mutual Fund deposited ₹6.96 crore under the consent mechanism.