The red-hot star of the IPO markets, HDB Financial Services is now creating a wave across Dalal Street. Just a day after listing with a double digit premium, the stock has over 4% today (July 3).
After a strong stock market debut on July 2, HDB Financial Services, the non-banking finance arm of HDFC Bank, continued to gain traction on the day 2.
Strong debut followed by Day 2 gains
The largest IPO of the year so far and the biggest NBFC issue, HDB Financial Services shares were listed at Rs 835 on July 2, marking a 12.83% jump over its issue price of Rs 740.
The share price of HDB Financial Services touched an intraday high of Rs 850.45 and eventually closed at Rs 840.90, up 13.63% from the IPO price.
HDB Financial Services share performance today
After its listing on July 2, today, the stock added another 4% to its gains.
According to NSE data, the company clocked a market cap of Rs 72,848.40 crore as of now and saw trading volumes of nearly 160 lakh shares on the exchange.
HDB Financial Services IPO highlights and shareholding changes
The Rs 12,500 crore IPO of HDB Financial Services, a mix of fresh issue and offer-for-sale was one of the largest public issues in recent years. The offer consisted of a Rs 2,500 crore fresh issue and a Rs 10,000 crore OFS by parent company HDFC Bank.
Following the IPO, HDFC Bank announced it had sold 13.51 crore shares in HDB Financial Services and now holds a 74.19% stake in the company.
HDFC Bank in an exchange filing on July 2 noted, “…in relation to the IPO of HDBFS, a subsidiary of the Bank. In this connection, we wish to inform you that the Bank had offered 13,51,35,135 equity shares of face value of Rs 10 each of HDBFS, in the said IPO, by way of Offer for Sale, at the issue price of Rs 740 per share.”
HDB Financial Services IPO: Subscription highlights
The IPO was subscribed 16.69 times overall. The QIBs portion was subscribed 55.47 times and the Non-Institutional Investors received a subscription rate of 9.99 times
Similarly, retail portion received a bid of Retail 1.41 times
HDB Financial Services IPO: How will the fund be used?
As per the company, proceeds from the fresh issue will go toward strengthening its Tier-I capital base, helping fund its future lending activities and support business expansion.
HDB Financial Services business snapshot
HDB Financial runs a multi-pronged operation that blends lending with business process outsourcing (BPO) services. Its lending arm is structured around three key segments such as enterprise lending, asset finance and consumer finance.