HDFC AMC to see a new Board of directors and trustees soon

Mutual fund company HDFC Asset Management Co Ltd (AMC), which aims to raise around Rs 2,800 crore through an initial public offer, will see a new set of Board of directors and trustees in the next 18 months. HDFC AMC non-executive director and chairman Deepak Parekh said the company has to ensure that it has the best governance standards and there is “total transparency”.

“We have to look at our own ships, we have to look at our own norms,” he said.

According to him, though it has a “good Board” but the members have been there for a long time.

“Next year or in 18 months we will have a set of new directors as well as trustees,” he said, adding that the trustees have a greater responsibility of ensuring that the governance standards are transparent.

A subsidiary of Housing Development Finance Corporation, HDFC AMC’s initial public offer will be open for subscription from July 24 to 27.

The price band has been fixed at Rs 1,095-1,100 per share.

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Currently there are two promoters - HDFC and Standard Life Investments with a shareholding of 56.97% and 37.98%, respecitvely.

Post public issue, HDFC’s shareholding will be reduced to 52.92%, while Standard Life’s stake will be down to 30.03%. Of the estimated Rs 2,800 crore the fund is looking to raise, about Rs 945 crore will go to HDFC and the rest to Standard Life.

As per draft red herring prospectus filed with Securities and Exchange Board of India (Sebi), 25,457,555 equity shares consisting of an offer for sale of up to 85,92,970 equity shares by HDFC and up to 16,864,585 shares by Standard Life Investments. Bids can be made for a minimum lot of 13 equity shares and in multiples of 13 equity shares thereafter.

Source: DNA Money