Mumbai: New HDFC twins HDFC Life Insurance and HDFC Asset Management Company are driving HDFC Group’s market cap up while their parents HDFC and HDFC Bank are cooling off a bit from their record highs.
HDFC Group’s total market capitalisation on Thursday stood at Rs 11,37,375.62 crore, a tad lower than that of India’s biggest business house, Tata Group, which stood at Rs 11,39,601.02 crore.
New age businesses like insurance and mutual fund have huge potential to grow further in the future, with penetration of both at a very low level in the country.
The asset under management of the mutual fund industry as a percentage of GDP remains too low in India compared to mature economies like the US and the UK, or even developing economies like Brazil, said a vision document of the Association of Mutual Funds in India and Boston Consulting Group this week.
HDFC AMC and HDFC Life Insurance have given investors returns of 37.90 per cent and 27.17 per cent, respectively, in the last three months. Both the shares are trading at their life time highs.
“In 125 crore population hardly 5 per cent is insured. Similarly, mutual funds have only 2 crore investors ,” said a market expert.
Post listing, the two companies have added Rs 1,60,978.02 crore to HDFC Group’s market cap.