HDB Financial Services, a subsidiary of HDFC Bank, is going for an Initial Public Offering (IPO), and the offer will open for public subscription on June 25. The price band of the IPO has been set at Rs 700-740 per share.
As already reported earlier on Financial Express.com, this is one of the largest IPO in the NBFC space and the issue size of the IPO is Rs 12,500 crore.
While the issue will be open for public subscription from June 25 -27, the anchor investors will bid on June 24.
The HDFC Bank statement also clarified that the offer also includes a reservation for subscription by the eligible employees of HDB Financial Services and the eligible stakeholders of HDFC Bank.
HDB Financial Services IPO: key details
HDB Financial Services stated that it filed the red herring prospectus with the Registrar of Companies, Gujarat, Dadra and Nagar Haveli, at Ahmedabad on June 19. The IPO is a combination of fresh equity shares and an offer for sale (OFS). While the company is looking to raise RS 2500 crore through fresh issue of equity shares, it is raising Rs 10000 crore through offer for sale.
HDFC Bank currently has a 94.36 percent stake in HDB Finance Services, making it the parent company of HDB Finance Services.
HDB Financial Services IPO: Unlisted share price spikes
In recent weeks, there has been a lot of buzz about the IPO of HDB Finance Services. The unlisted shares of HDB Financial Services have seen a sharp spike in the price in the last 1 month to Rs 1,250 per share from Rs 950 a share ahead of the formal announcement of the IPO date.
How will HDB Finance Services utilize IPO proceeds?
The company will utilize the proceeds of the fresh issue of Rs 2,5000 crore to boost its Tier-1 capital base. Besides supporting its capital needs, such as additional lending, the fresh issue will also support the company’s future growth.