The much-anticipated IPO of HDB Financial Services, worth $1.5 billion, was fully subscribed on the second day of bidding on Thursday, as investors lined up for India’s biggest offering so far this year amid signs of a recovery in the capital market.
Yesterday, on day 1, HDB Financial Services’ IPO received a 37 percent subscription. The HDFC Bank’s NBFC unit’s IPO will conclude tomorrow, June 27.
HDB Financial Services is the HDFC Group’s first public float in seven years and received bids worth up to 101.63 billion rupees ($1.19 billion) at the upper end of the 700-740 rupees price band, or 1.06 times the shares on offer, exchange data showed.
The shares are likely to start trading on July 2 in Mumbai.
The IPO, the biggest ever by an Indian non-bank lender, raised 33.69 billion rupees from so-called anchor investors, which included BlackRock funds, Life Insurance Corporation of India (LIC), and Norway’s sovereign wealth fund.
HDFC Bank, which holds 94% stake in HDB, is selling shares worth up to 100 billion rupees in the three-day share sale from Wednesday to Friday. HDB is also issuing new shares worth 25 billion rupees in the IPO.
(With inputs from Reuters)