The much-awaited initial public offering (IPO) of HDB Financial Services, a subsidiary of HDFC Bank, has kicked off with moderate interest. On the first day of bidding, the IPO saw an 18% subscription rate. Investors placed bids for 2.35 crore shares out of the 13.04 crore shares on offer by midday.
Breaking it down by categories, non-institutional investors showed stronger interest with a 29% subscription rate. Retail individual investors (RIIs) matched the overall average, subscribing to 18% of their allocated quota. This early response sets the stage for the Rs 12,500-crore IPO, which will close on June 27.
HDB Financial Services has already secured Rs 3,369 crore from anchor investors, a promising start for the NBFC arm of HDFC Bank. The price band for the shares is fixed between Rs 700 and Rs 740 per share. At the upper end, the company’s valuation reaches nearly Rs 61,400 crore.
The IPO comprises a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank. Currently, HDFC Bank holds a 94.36% stake in HDB Financial Services. The fresh funds will bolster the company’s Tier-I capital base, fueling future growth and lending activities.
This IPO is the second-largest in India in the last three years, trailing only behind Hyundai’s Rs 27,000-crore offer. A consortium of top financial firms, including JM Financial, BNP Paribas, and Goldman Sachs, are managing the offering.
If all goes as planned, HDB Financial Services’ shares will debut on the BSE and NSE on July 2. The IPO’s progress will be closely watched, especially with the mixed but hopeful initial response. Investors and market analysts are keen to see how the remaining days of bidding unfold.