THOSE APPLYING SHAREHOLDER QUOTA AND RETAIL QUOTA, APPLY 13 SHARES ONLY IN EACH QUOTA. BECAUSE BOTH QUOTA WILL BE SUBSCRIBE HEAVILY. RETAIL UPTO 4 TIMES EXPECTED AND SHAREHOLDER QUOTA MORE THAN 15 TIMES.
573.1. Johny| Link| Bookmark|
July 26, 2018 11:27:43 AM
IPO Mentor (700+ Posts, 1000+ Likes)
You are right but it would still be worth taking a chance and apply for 169 shares / 13 lots in Shareholder category if one has sufficient funds as - 1) Many retail investors would have bought HDFC share recently and would apply under Shareholder category but applications get rejected. 2) Most of the share holder may apply for multiple lots, so even though it may get oversubscribed, actual number of valid applications may be less 3) There could be many share holders who due to one or the other reason may not apply like not being aware, institutional share holder etc.
You made some wonderful points. Just to extend the discussion on the same, some point wise questions on your note.
1. Won't those applications get rejected at the application stage itself ? Will those applications get reflected in the latest subscription status ? 2. Quite possible. 3. Quite possible. 4. Is there any authentic data available on application and allotment details of any good issue where the share holder portion was over subscribed. Was it that in an over subscribed issue all successful applicants got only allotment of 1 lot.
@Andi Thank you 1) No they don't reject applications at the application stage itself though some banks do pop up a message when applying in shareholder category about the eligibility but don't know how many retail investors would read the message. 4) No Idea. Hdfc life was under subscribed in this category due to market sentiment towards Insurance at that time.
One more point to my original message- There could be quiet a few retail investors who may apply at lower price band or price below cut off also.
Your additional input on people applying at lower price band is well taken. I was reading the discussion page of TCNS Clothing today and there are a few queries from some investors on the same topic.
Well !!!! with your answer " Umeed bad gaya".
I have decided to go for 2 lots if the over subscription in share holder category is in and around 1.5 X.
I have applied for maximum in Shareholder category as I feel that there is still a chance for higher allotment in case all shareholders do not apply. Someone had posted some figures based on which I concluded that about 70% shareholders would need to apply and then each will get minimum. That post also said that in their earlier ipo, only abt 25 thousand shareholders applied out of about 5 Lac shareholders. OFcourse, that time, the issue of hdfc life was not enjoying good gmp. Let us see now.
I had posted that it may require abt 70% of shareholders to invest through their quota for it to be allotted a minimum of one lot each. I just checked and stand corrected. The current number of HDFC shareholders are abt 5 Lacs. and abt 1.8 Lac lots of 13 shares each would complete the SH quota. So the percentage comes to abt 35% shareholders applying. Which might well be the case, though it can be lesser. In that case, ppl applying higher numbers can get a bit more. Also, do not get unduly perturbed with higher subscription in SH category since it may be due to ppl applying in higher lot than minimum.
Dear Andi and Johnny, Take chance and apply 13 lot if you have excess money. In case of over subscription each applicant will get one lot and after that remaining shares if available, then that will distribute proportionate basis to all applicants.
I will be nice if you can confirm on the point mentioned by Mr. Rajakumar on the No. of share holders. Thanks.
@ Rajakumar,
Assuming SH portion is over subscribed due to applicants applying for higher lots, then it is safe to presume that all applicants receive 1 lot each. How does the registrar proportionate the remaining shares ? Is it, if available, first allot to those who have applied for 2 lots, then 3, .....Please explain if you have some information. Thanks.
Andy. Tks first of all for appreciating. And yes, on checking the filing by hdfc of its sh pattern for qtr ending march 18, the no of shareholders is indeed 2.4 lacs or so. i had got this data on no of shareholders existing on 30.6.18 as abt 5.62 lacs, online. So i had safely assumed abt 5 lac even on 14.3.18. I apologise for the mistake. And surely, then the 70% premise stands, as i posted before correcting
24,00,000 shares up for grab, 2,40,000 + share holders and upwards of 70% share holders need to invest .... that sounds really interesting. This gives a real signal that one should apply for more than one lot.
In the meanwhile, do you have any idea on the question I had put to Mr. Rajakumar. Thanks.
HDFC Asset Management Company Ltd. Offer for sale of 25,457,555 Equity Shares of Face Value Rs 5/- each aggregating to Rs. 2,800 Crs. at a Price band of Rs. 1,095 - 1,100 Per Equity Share
HDFC Asset Management Company (AMC) Ltd. is the most profitable AMC in India since FY2013. HDFC AMC has been the largest AMC in India in terms of Equity Oriented AUM since the last quarter of 2011. The Company has a total AUM of Rs. 3,07,585 Crs. as of 30th June, 2018.
HDFC AMC enjoys august parentage and strong Brand Equity of the HDFC group, One of India's largest Financial Conglomerates. The company operates as a Joint Venture between HDFC Ltd. and Standard Life Investments Ltd. (SLI).
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The company serves customers across the length and breadth of India encompassing 200 cities through their pan-India network of 209 branches which is ably supported by a strong and diversified network of over 65,000 empanelled distribution partners. Further the total live accounts nearly doubled from 4.9 Million in FY2013 to 8.1 Million in FY2018.
We believe the Equity shares of HDFC AMC offers an tremendous investment opportunity for all kinds of investors from Retail to HNI and Institutional to FPI and we strongly recommend SUBSCRIBE for all time horizons from Short to Long term to reap the benefits of excellent capital appreciation in years to come.
The grey market premium is running at 10 percent which seems like the issue might open very high. Have been hearing it can go 50 percent on the first day. A must apply IPO, don't miss it.
The highest number of applications on the last day: HUDCO Limited - 13,05,722 applications. Cochin Shipyards Limited - 11,66,544 applications. CDSL Limited - 11,16,724 applications. Avenue Supermarkets Limited, which had witnessed a bidding frenzy similar to that seen in HDFC AMC, received only 8,67,230 applications on the last day.
Today 14 lakh forms. Tomorrow another 13 lakh forms as you mentioned in the HUDCO. So total form 27 lakh possible. One thing you have to look in this counter maximum number of applicants filed their application on first day or second day itself, because no need to look Qib figures on last day. So last day it will not go beyond 13 lakh forms.