HDB Financial Services IPO subscribed nearly 17 times on final day with over 217 crore bids, QIBs lead demand
The initial share sale of HDB Financial Services Ltd, a subsidiary of HDFC Bank, got subscribed 16.69 times on the closing day of bidding on Friday, amid encouraging participation from institutional buyers.
The initial public offer (IPO) received bids for 2,17,67,62,140 shares against 13,04,42,855 shares on offer, according to details available on the NSE.
Qualified Institutional Buyers (QIBs) part garnered 55.47 times subscription while the category for non-institutional investors got subscribed 9.99 times. Retail Individual Investors (RIIs) portion attracted 1.41 times subscription.
The mega offer got fully subscribed on the day two of bidding on Thursday.
The over subscription of the largest offering so far this year came at a time when the equity markets are riding a bull rally.
In the past four trading days, the BSE benchmark Sensex has jumped 2,162.11 points or 2.64 per cent and the NSE Nifty jumped 665.9 points or 2.66 per cent.
HDB Financial Services, a non-banking financial company (NBFC), mopped up ₹ 3,369 crore from anchor investors.
The price band for the offer is ₹ 700-740 per share.
At the upper end of the price band, the company is valued at nearly ₹ 61,400 crore.
The IPO is a combination of a fresh issue of equity shares worth ₹ 2,500 crore and an offer for sale (OFS) of ₹ 10,000 crore by the promoter HDFC Bank.
At present, HDFC Bank">HDFC Bank owns a 94.36 per cent stake in HDB Financial Services.
The company proposes to utilise proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.
The HDB Financial IPO is the second biggest in the last three years after South Korean automaker Hyundai's ₹ 27,000-crore offer.
JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India are managing the company's IPO.
The company's shares are expected to be listed on the BSE and NSE on July 2.
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