HDB Financial shares slip below IPO price for first time, down over 1% to hit new 52-week low
ADVERTISEMENT The decline brings the stock below its IPO issue price of Rs 740, after having opened at Rs 835 during its market debut on July 2. The shares had listed at a premium of 12.84% over the issue price, reflecting strong investor interest at the time.
HDB Financial's Rs 12,500 crore initial public offering (IPO) comprised a fresh issue of Rs 2,500 crore and an offer-for-sale of Rs 10,000 crore. The issue closed on June 27 with an overwhelming response, being subscribed 17.65 times overall. Qualified Institutional Buyers (QIBs) led the demand, subscribing their portion 31.73 times.
Despite a volatile market backdrop, investor enthusiasm was driven by the company's strong parentage and diversified loan book across retail, SME, and asset finance segments.HDB also boasts a wide phygital footprint with over 1,700 branches across India, more than 80% of which are located outside the top 20 cities.
The IPO attracted bids worth over Rs 1.61 lakh crore, making it the second-most subscribed large issue (over Rs 10,000 crore) after Tata Technologies. While it fell short of Bajaj Housing Finance's Rs 3 lakh crore+ record, it surpassed other recent NBFC listings in terms of demand.
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At the upper end of the price band, HDB Financial was valued at a price-to-earnings (P/E) ratio of 28.15x based on FY25 earnings, with an implied market capitalization of around Rs 61,253 crore.
Also read: Rekha Jhunjhunwala exits Nikhil Kamath, Madhusudan Kela-backed smallcap stock with 111% returns in 3 years
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