HDFC on Thursday informed exchanges that it has approved to offer a part of its shareholding in HDFC Asset Management Company (HDFC AMC), through an offer for sale in an initial public offer.
The board of directors of HDFC AMC chaired by Deepak Parekh today approved initiating the process of an IPO, subject to regulatory approvals.
As of March 2017, HDFC held 59.99 percent stake in HDFC AMC, which reduced to 57.36 percent at the end of September 2017.
After the proposed IPO, HDFC AMC will continue to be a subsidiary of HDFC.
"We believe that the listing would unlock value of the business for shareholders and provide investors an opportunity to participate in emerging Asset Management space within our group," Deepak Parekh, Chairman of HDFC AMC.
HDFC and Standard Life Investments have also, in principle, approved the IPO of HDFC AMC by offering shares to the public in one or more tranches.
"After dilution, the shareholding of HDFC and Standard Life in HDFC AMC will be at least 50.01 percent and 24.99 percent, respectively," the company said in its filing.
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