HDFC AMC shares make stellar debut, jump 65%

MUMBAI : HDFC Asset Management Co. Ltd made a stellar debut on the bourses on Monday with the stock gaining over 65% on the back of high investor interest, riding its brand value and the prospects of the mutual fund industry growth.

HDFC AMC’s ₹2,800 crore initial public offering (IPO) was subscribed more than 83 times last month. According to analysts, while the long-term story for the stock looks promising, the euphoric listing may mean upside in the near-term could be limited. The asset manager’s shares closed 65.01% higher on BSE at ₹1,815.15, against the issue price of ₹1,100, which was the upper end of the price band of ₹1,095-1,100 per share.

The HDFC AMC stock opened 58.09% higher on BSE at ₹1,739. During the day, it gained 67.54% to hit a high of ₹1,842.95 a share.

The positive momentum in the broader market also helped the sentiment.

“It is a good long-term story. However, after the stellar listing, it is doubtful if the outperformance will continue in the near term,” said R. Sreesankar, co-head, institutional equities, Prabhudas Lilladher Pvt. Ltd.

“Valuations look stretched for sure. In the near term, upside may be capped.”

HDFC AMC, the second largest asset manager in the country, is a joint venture between mortgage lender HDFC and Standard Life Investments Ltd.

THE HDFC AMC STOCK OPENED 58.09% HIGHER ON BSE AT ₹1,739 AND HIT AN INTRADAY HIGH OF ₹1,842.95 A SHARE