HDB Financial Services IPO gets 37% subscription on 1st day of bidding

New Delhi: The initial public offer of HDB Financial Services Ltd, a subsidiary of HDFC Bank, received 37 per cent subscription on the first day of bidding on Wednesday.

The initial share sale got bids for 4,85,98,380 shares against 13,04,42,855 shares on offer, as per NSE data.

The category for non-institutional investors attracted 76 per cent subscription while the quota for Retail Individual Investors (RIIs) got subscribed 30 per cent. Qualified Institutional Buyers (QIBs) quota got subscribed 1 per cent.

HDB Financial Services mopped up Rs 3,369 crore from anchor investors.

The Rs 12,500-crore initial public offering (IPO) will conclude on June 27. 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 per cent 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.

JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India are managing the company's IPO.

The company's shares are expected to be listed on the BSE and NSE on July 2.