HDB Financial Services IPO Sees 18% Subscription On Day 1, Retail & NII Segments Show Early Interest

Mumbai: The initial public offering (IPO) of HDB Financial Services, a company owned by HDFC Bank, received 18 percent subscription on its first day of bidding, June 25.

According to NSE data at 12:57 PM, the IPO got bids for over 2.35 crore shares against the 13.04 crore shares on offer.

Retail and NII investors show interest

The retail investor portion was subscribed 18 percent.

The non-institutional investor (NII) category was subscribed 29 percent.

Bidding will stay open till June 27.

IPO details

IPO Size: Rs 12,500 crore

Price Band: Rs 700 to Rs 740 per share

Fresh Issue: Rs 2,500 crore

Offer for Sale (OFS): Rs 10,000 crore by HDFC Bank

At the upper end of the price band, the company’s valuation stands at around Rs 61,400 crore.

Use of funds

HDB plans to use the fresh issue amount to strengthen its Tier-I capital base. This will help in future business growth and lending activities.

Anchor investor success

A day before the IPO opened, HDB Financial Services raised Rs 3,369 crore from top anchor investors, including mutual funds, insurance firms, and global institutions.

Second biggest IPO in recent years

This IPO is the second largest in the last three years, after Hyundai’s Rs 27,000 crore issue.

Listing and lead managers

Shares are expected to be listed on BSE and NSE on July 2.

The IPO is managed by 13 top investment banks, including Goldman Sachs, Morgan Stanley, Jefferies, HSBC, and others.

(With PTI Inputs)

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