HDB Financial Services IPO Oversubscribed 17 Times on Final Day

The initial public offer of HDB Financial Services Ltd, a subsidiary of HDFC Bank, was subscribed 16.69 times on the closing day of bidding on Friday. The IPO received bids for 2,17,67,62,140 shares against 13,04,42,855 shares on offer. Qualified Institutional Buyers (QIBs) subscribed 55.47 times, non-institutional investors subscribed 9.99 times, and Retail Individual Investors (RIIs) subscribed 1.41 times.

The mega offer got fully subscribed on the second day of bidding. The over subscription came amidst a bullish market trend. In the past four trading days, the BSE Sensex rose by 2.64% and the NSE Nifty by 2.66%.

HDB Financial Services raised ₹3,369 crore from anchor investors. The price band for the offer is ₹700-740 per share, valuing the company at nearly ₹61,400 crore. The IPO comprises a fresh issue of equity shares worth ₹2,500 crore and an offer for sale of ₹10,000 crore by HDFC Bank.

HDFC Bank currently holds a 94.36% stake in HDB Financial Services. The company plans to use the proceeds to strengthen its capital base for future growth and lending activities.

This IPO is the second largest in the last three years after Hyundai's ₹27,000-crore offer. JM Financial, BNP Paribas, and other firms are managing the IPO.

According to the source: Mint.