The Rs 12,500 crore HDB Financial Services IPO has had a stunning run and the NBFC major is all set for its Dalal Steet debut. The grey market is already buzzing with optimism. It has rallied over 10% since yesterday.
If you are watching the IPO scene closely, HDB Financial’s grey market premium (GMP) is hard to miss. As of the latest, the GMP of this mainboard issue is hovering between Rs 70 – 75 per share. This translates to the stock could debut at around Rs 815. This is a neat 10% jump from its issue price of Rs 740.
At one point, the GMP even touched Rs 83, hinting at an 11% premium on listing day.
HDB Financial Services IPO: What is fuelling the frenzy?
HDB Financial’s IPO, which opened for bidding on June 25 was closed on June 27. The issue saw a massive interest from institutional players with an overall subscription of 16.69 times.
The Qualified Institutional Buyers (QIBs) portion was oversubscribed a whopping 55.47 times. Meanwhile Non-Institutional Investors (NIIs) lapped it up 9.99 times. Even the retail category saw a 5.72 times subscription.
In addition to it, on June 24, the company mopped up Rs 3,369 crore from anchor investors.
HDB Financial IPO snapshot
The public issue is one of the largest issues in this year so far and is also the largest NBFC issue. It includes a fresh issue worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore.
The fresh funds are expected to be used for strengthening the capital base of HDB Financial, while the OFS allows existing shareholders, including HDFC Bank, to unlock value.
The IPO was managed by BNP Paribas, with Link Intime handling registrar duties.
About the company
The company was founded in 2007. It is a retail-centric NBFC and a subsidiary of HDFC Bank. The company offers a mix of secured and unsecured loans, including personal loans, business loans, and gold loans.
It also runs a business process outsourcing (BPO) arm that provides services like collections and customer support.
Its standout feature is a “phygital” model that blends physical presence (branches and field agents) with digital access.