HDB Financial Services IPO News: HDFC Bank unit HDB Financial Services’ initial public offer, to raise Rs 12,500 crore, concluded on Friday, June 27, with strong interest across categories. The overall subscription of the public offer—a combination of fresh issuance worth Rs 2,500 crore and an offer for sale to the tune of Rs 10,000 crore—was recorded at 16.7 times the shares on offer, showed provisional exchange data. The IPO, which opened on June 25, received bids for 217.7 crore shares against the 13 crore shares on offer, according to the data.
This marks the biggest IPO by a non-banking financial company in India.
Here are the subscription details of the year’s biggest IPO so far:
| Category | Subscription (No. of times the equity reserved) |
| Qualified institutional buyers (QIBs) | 55.5 |
| Non-institutional investors (NIIs) | 10 |
| Retail investors | 1.4 |
| Employees | 5.7 |
| Total | 16.7 |
One-tenth of the issue was set aside for HDFC Bank shareholders.
HDBFS IPO | Price band, lot size, listing date, other essential details
The IPO, which concluded after three days of bidding, was available in a price band of Rs 700-740 per share. Bidding was available in lots of 20 shares, translating to Rs 14,000-14,800 per lot.
The issue achieved full subscription during the second day of the bidding process.
How market guru Anil Singhvi views HDB Financial Services
Zee Business Managing Editor Anil Singhvi expects reasonable listing gains in HDB Financial Services.
The market wizard is positive on the company from a long-term perspective.
Singhvi has highlighted the following key points about the Dalal Street-bound company:
Positive
- Strong parentage
- Diversified product portfolio
- Extensive distribution network
- Robust growth in customer base
- Stable asset quality
- Reasonable valuations
Negative
- Large exposure in unsecured loans (27 per cent of the total loan book)
- Return ratios reasonable, neither too attractive nor too expensive
What is HDB Financial Services? What does it do? How is it related to HDFC Bank?
Mumbai-based HDB Financial Services (HDBFS) is an NBFC offering a range of loans and third-party insurance products.
HDFC Bank holds a 94 per cent stake in HDB Financial Services.
When will HDB shares be available in the market?
The stock is expected to enter the listed space tentatively on July 2.
Anchor investors
On the eve of the IPO, the market-bound company raised a sum of Rs 3,369 crore from anchor investors, including LIC, BlackRock, and Norway’s sovereign wealth fund, Government Pension Fund Global.
