The initial share sale of HDB Financial Services Ltd, a subsidiary of HDFC Bank, has been subscribed 2.61 times so far on day three of the offer on Friday.
The Rs 12,500-crore initial public offer (IPO) received bids for 33,99,82,220 shares against 13,04,42,855 shares on offer, according to details available on the NSE.
Non-institutional investors part attracted 5.87 times subscription, while the quota for qualified institutional buyers (QIBs) subscribed 2.86 times. The portion for retail individual investors (RIIs) received 0.96 times subscription.
HDB Financial Services IPO GMP Today
The grey market premium (GMP) for HDB Financial Services IPO has risen on the final day of bidding as compared to Thursday. According to data from InvestorGain, the GMP stood at Rs 65 at 11:32 a.m.
The latest GMP suggests an estimated listing price of Rs 805 apiece, compared to the upper price band of Rs 740 apiece. This indicates listing of shares at a premium of 8.78% over the issue price.
On Thursday, the GMP stood at Rs 60 per share, indicating a listing price of Rs 800 apiece at a premium of 8.11% over the upper limit of the IPO price band.
Ahead of the launch of the IPO, the GMP stood at Rs 66 apiece on June 23, indicating a potential listing gain of 8.92% per share. The GMP increased to Rs 74 apiece on June 24, reflecting a premium of 10% over the issue price.
Note: GMP is not an official source of data and is based on speculation.
HDB Financial Services IPO Details
HDB Financial Services mopped up Rs 3,369 crore from anchor investors. The price band for the offer has been fixed at Rs 700-740 per share. At the upper end of the price band, the company is valued at nearly Rs 61,400 crore.
The IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by the promoter HDFC Bank.
At present, HDFC Bank owns a 94.36% stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank.
The company proposes to utilise proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.
The HDB Financial IPO is the second biggest in the last three years after South Korean automaker Hyundai’s Rs 27,000-crore offer.
The company’s shares are expected to be listed on the BSE and NSE on July 2.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
(With PTI inputs)
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