HDB Financial Services’ Rs 12,500-crore initial public offering (IPO), the largest public offering by a non-banking entity in the domestic capital market, got fully subscribed on Thursday, with investors bidding for 15 crore shares as against 13.04 crore offered.
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The issue got 1.16 times (116 per cent) subscribed on the second day of the subscription.
The retail portion got subscribed 64 per cent, as investors in the category bid for 3.6 crore shares against the total retail quota of 5.62 crore shares.
The qualified institutional buyers (QIB) portion got subscribed 90 per cent, with bids for 2.89 crore shares being received as against 3.21 crore shares offered. The non-institutional investors (NII) bid 2.29 times their quota. Employees’ and shareholders’ portions got subscribed 2.97 times and 1.68 times.
The issue, which has a price band of Rs 700-740 per share, will close for subscription on June 27 (Friday).
The issue consists of a fresh issuance aggregating up to Rs 2,500 crore and an offer for sale of up to Rs 10,000 crore by the parent company HDFC Bank.
After the IPO, HDFC Bank’s stake in HDB Financial Services will be reduced to 75 per cent from the current 94 per cent. The issue will close on June 27.
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Ahead of the IPO opening, HDB Financial Services raised Rs 3,368.99 crore from anchor investors, including Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), Nippon Life India MF, BlackRock, Axis MF, Aditya Birla Sun Life MF, UTI MF, Schroder International Selection Fund, Goldman Sachs Funds, among others.
HDB Financial Services’ IPO is the country’s largest issue since Hyundai Motor India Ltd’s Rs 27,870- crore share offering last year.
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