The fully subscribed Rs 12,500 crore initial public offering (IPO) of HDB Financial Services propelled the stock price of India’s largest private sector bank, HDFC Bank, to cross Rs 2,000 per share for the first time on Thursday. The stock hit an all-time high of Rs 2,027.40 during intra-day trade before ending the day at Rs 2,023, up 2.16% from its previous close of Rs 1,980.20 on the BSE. With today’s gain, the market capitalisation (m-cap) of the private bank surged to over Rs 15.51 lakh crore, ranking second in the m-cap pecking order behind Reliance Industries (m-cap Rs 20.23 lakh crore).
The rise in HDFC Bank’s stock helped improve the overall sentiment of bank stocks, with Bank Nifty touching a new all-time high of 57,263.45 during the day’s trade and ending the day on a positive note at 57,206.70. The IPO of HDB Financial, which was subscribed 1.1 times with one day left for the IPO to close, has been the primary reason for the surge in HDFC Bank’s stock price. The bank is expected to pocket Rs 10,000 crore from the IPO proceeds of HDB Financial. Since the HDB Financial IPO opened on June 25, HDFC Bank’s stock has gained 3.1% in the past two days. Post-IPO, HDFC Bank’s stake in HDB Financial will decrease to 74% from the current 94.3% stake.
Today, telecom major Bharti Airtel’s stock price also moved higher, crossing Rs 2,000 per share for the first time and touching an all-time high of Rs 2,016.15 in intra-day trade before settling at Rs 2,014.20, up 2.5%. The rise in stock price helped the telecom company maintain its fourth position in the m-cap ranking, registering an m-cap of Rs 11.48 lakh crore.