India's HDB Financial raises $392 million in IPO anchor book
June 24 (Reuters) - HDB Financial Services raised 33.69 billion rupees ($392 million) from anchor investors ahead of its $1.5 billion initial public offering (IPO), which is set to be India's largest share sale so far this year.
The IPO, the biggest-ever by an Indian non-bank lender, secured funds from investors including BlackRock funds, Life Insurance Corporation of India (LIFI.NS), opens new tab and Norway's sovereign wealth fund, a stock exchange filing showed late on Tuesday.
The IPO comes at a time when foreign investors are returning to Indian equities after a period of heavy outflows, lured by $5.5 billion in large block trades in May and boosting hopes for a revival in the nation's stock market.
The lender is offering new shares worth 25 billion rupees in the IPO, while HDFC Bank (HDBK.NS), opens new tab, India's largest private lender and the owner of a 94% stake in HDB Financial, is selling shares worth 100 billion rupees.
LIC was allotted about 3 million shares, or about 6.5% of the anchor book.
Domestic mutual funds bought shares valued at 14.34 billion rupees, accounting for nearly 43% of the anchor book.
Anchor investors purchased shares at the upper end of the IPO price band, set at 700–740 rupees per share, representing about 27% of the total issue. The IPO is open to other investors, including retail buyers, from June 25 to 27.
HDB Financial Services has reserved 10% of its total issue for existing shareholders of HDFC Bank.
The IPO is priced at a discount of up to 70% compared with the share price in the informal 'grey market' for unlisted securities, surprising some investors.
The pricing was determined based on extensive roadshows, investment bankers said, adding that grey market trades have no influence on prices.
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