The countdown for the listing has begun for largest NBFC and also one of the biggest IPO of the year so far – HDB Financial Services. Backed by HDFC Bank, HDB Financial is all set to debut on the stock exchanges in just 2 days. After creating a splash in the primary market with overwhelming investor interest, the company is gearing up for its big moment on Dalal Street.
Let’s take a complete lowdown on the IPO, listing details, investor response, and everything in between.
HDB Financial Services IPO: Listing date
The allotment of shares for the HDB Financial IPO is likely to be finalised today, June 30. After this, the company’s shares are scheduled to be listed on Wednesday, July 2, on both the BSE and NSE.
HDB Financial Services IPO: Massive subscription
HDB Financial’s IPO turned out to be the most subscribed issue in the recent years, drawing huge interest from institutional investors. The IPO opened for bidding on June 25 and closed on June 27, and by the end of the window, the offer had been subscribed 16.69 times.
Among investor categories, the Qualified Institutional Buyers (QIBs) portion on the final day of bidding received a subscription rate of 55.47 times.
Non-Institutional Investors (NIIs) subscription rate stood at 9.99 times and for Retail Investors (RIIs) portion, it was subscribed at a more modest 1.41 times.
Moreover, it is interesting to note that the overall demand firmly places this IPO among the best-performing since Zomato’s in 2021.
HDB Financial Services IPO: IPO size and structure
The HDB Financial IPO is a large-scale offering. The total issue size of this offering was Rs 12,500 crore. This included a fresh issue of Rs 2,500 crore and an offer for sale (OFS) worth Rs 10,000 crore by existing shareholders.
The price band of this mainboard issue was fixed between Rs 700 and Rs 740 per share. Furthermore, ahead of the IPO, the company raised Rs 3,369 crore from anchor investors on June 24.
HDB Financial Services IPO: Grey market buzz
Ahead of the listing, HDB Financial in the unofficial grey market as per the latest data available, the grey market premium (GMP) stood at Rs 57 per share, suggesting a likely listing price of around Rs 797. That translates to a potential gain of 7.7% over the IPO’s upper price band.
HDB Financial Services IPO: Big names behind the issue
This mainboard IPO is managed by a group of top-tier domestic and global investment banks. The book running lead managers (BRLMs) include BNP Paribas, JM Financial, BofA Securities, Goldman Sachs India, HSBC Securities, IIFL Capital, Jefferies India, Morgan Stanley, Motilal Oswal, Nomura, Nuvama Wealth, and UBS Securities. The IPO’s registrar is MUFG Intime India Private Limited (Link Intime), responsible for processing applications, refunds, and allotments.
About the company
HDB Financial Services was founded in 2007. It is a non-banking financial company (NBFC) focused primarily on retail lending and offers a range of services such as personal loans, business loans, consumer durable loans, and more.
Apart from lending, it also operates in the business process outsourcing (BPO) space such as handling back-office support, collections, and insurance distribution services.
Looking now in terms of size, it is noteworthy that HDB’s IPO ranks as the fourth largest in India, behind Hyundai, LIC, and Paytm.