HDFC AMC's Issue Of Shares - Angel Broking

Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd.

Offer for sale (OFS) issue details for HDFC Asset Management Company LTD are as below:

Issue Period: June 18, 2020
Discount to Retail Investor: NA
Cut Off Rate: Rs. 2,386/-
Reservation: 10% of Offer size

Outlook & Valuation:

"At the cut off rate of OFS, it is offered at 40x FY2020 EPS, demanding a market cap of Rs.50,735cr, which is 13.7% of the MF AUM (Rs.370,113cr for the month of March 2020). Considering that HDFC AMC is the second largest AMC coupled with huge potential of MF industry growth, strong return ratios, asset light business, higher dividend payout ratio and track record of investment performance, we are positive on this OFS and rate it as SUBSCRIBE."

Shares of HDFC Asset Management Company Ltd was last trading in BSE at Rs.2414.5 as compared to the previous close of Rs. 2537.65. The total number of shares traded during the day was 85559 in over 7519 trades.

The stock hit an intraday high of Rs. 2489.8 and intraday low of 2406.4. The net turnover during the day was Rs. 209350754.

Source : Equity Bulls

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