HDB Financial Services IPO: The public issue of HDFC Bank’s subsidiary HDB Financial Services opened on 25 June. On the first day it has closed with 0.40 percent subscription. During this period, the reserve share for qualified institutional buyers, 0.01 times, reserved share for non -institutional investors, 0.81 times and reserve share for retail investors was 0.33 times. The reserve portion received 1.86 times subscription for the company’s employees.
The Rs 12500 crore issue of HDB Financial Services will be closed on June 27. In this, 3.38 crore new equity shares worth Rs 2,500 crore will be issued. Also, the promoter HDFC Bank will have an offer of 13.51 crore shares of Rs 10,000 crore. Prior to IPO, HDFC Bank had a 94.3% stake in the company. The price band for IPO is Rs 700-740 per share and lot size 20 shares.
How to use IPO money
Non-Banking Financial Company (NBFC) HDB will be used to strengthen the company’s Tier-1 capital base by releasing new shares worth Rs 2500 crore in the IPO of HDB Financial Services, so that future capital needs can be met. Despite the proposed IPO, HDB Financial Services will remain a subsidiary of HDFC Bank. The company works through 1,680 branches. Its biggest loan segments include vehicle finance and loans in lieu of property.
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What indication about listing from gray market
After the issue is closed, the allotment of shares will be finalized on June 30. The listing of shares will be on BSE, NSE on 2 July. In the gray market, the company’s shares are trading at a premium of Rs 740 to Rs 48 or 6.49 percent of the company’s shares. The gray market is an unauthorized market where shares of a company trades it till its listing.
HDB Financial Services filed its draft Red Herring Prospects (DRHP) in October 2024 with the Securities and Exchange Board of India (SEBI). It was approved by SEBI in early June this year. The company raised Rs 3369 crore from anchor investors before IPO.
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