The maiden public issue of HDB Financial Services, which at Rs 12,500 crore is also the largest ever from the non-banking companies segment till date, has closed with strong investor interest on the final day of bidding on Friday. The 12,500-crore IPO of the HDFC Bank subsidiary was subscribed 16.69 times its offer size, according to data from exchanges.
The IPO has received bids for over 217.66 crore shares, as against the offer size of 13.04 crore shares, according to NSE data, making it the most subscribed billion dollar IPO since Zomato-parent Eternal's public issue that was oversubscribed more than 29 times in July 2021.
Qualified institutional buyers took the lead in the subscription race, booking their reserved portion by over 55 times. Non-institutional investors have subscribed their reserved portion nearly 9.98 times. Retail investors booked the portion kept for them over 1.4 times.
The issue opened for public bidding on June 25 and closed on June 27. The issue comprises Rs 10,o00 crore in offer for sale by HDFC Bank and Rs 2500 crore of fresh issue by the company. HDFC Bank holds 94.3% stake in the NBFC.
The price band for the issue was set at Rs 700-740/share. Investors could bid for a minimum of 20 shares, requiring an investment of Rs 14,800, and in multiples thereafter. The allotments are likely to be announced on June 30, and the shares will be open for trade on BSE and NSE on July 2.
Ahead of listing, the unlisted shares of the company are trading with a grey market premium (GMP) of 7.16% over the IPO price at Rs 793 share in the grey market. On the day the prince band was announced it was at a 35% discount to the GMP.
A day before the IPO opened for public subscription, HDB Financial had raised Rs 3,369 crore from a combined list of 141 anchor investors. The largest institutional investor Life Insurance Corporation has emerged as the biggest anchor investor in the IPO with allocation of around Rs 220 crore, which is 6.53% of the total allocations.