upcoming IPO Candidate of HDFC Group, HDFC Asset Mgt, and feels that it is a good opportunity to invest in it. This IPO opens on, to raise ~2700crs @ valuation of Rs.23300cr. Great chance to own the most profitable AMC in India.
-Consistent mkt leadership position(As of March 2018, HDFC AMC has 13% mkt sh).
-Over last 10yrs AUM has grown at an CAGR of 23%. Monthly SIP inflows of ~Rs.11.5bn indicates stickiness.
-Superior & diversified product mix distributed through a multi-channel distn network(As of March 2018, HDFC AMC has around 50% of equity oriented AUM & 34% of AUM is distributed through direct channel).
-Focus on individual customers & customer centric approach (Retail AUM accounts for 25% of Total AUM, as of March 2018).
-Consistent profitable growth (PAT has grown at CAGR of 24% over FY07-18).
-One of the highest gross yield(59 bps on avg AUM) in the industry.