HDB Financial Services Makes Strong Debut with 14% Gain

HDB Financial Services made a promising stock market debut on Wednesday, with its share price opening at Rs 835 apiece on both the NSE and BSE, and ending the trading session with 14% gains on stock exchanges. The issue price of Rs 740 per share was significantly undercut by the market, with the stock closing at Rs 840.95 a share on NSE and Rs 840.9 a share on BSE. The company's 13% listing premium is seen as a measured note, respectable without being euphoric, reflecting the market's careful consideration of the dual proposition of HDFC lineage and the challenges of a maturing NBFC sector.

Key Takeaways:

HDB Financial Services' share price opened at Rs 835 apiece on both NSE and BSE, and ended the trading session with 14% gains.
The stock's listing premium of 13% is seen as a measured note, respectable without being euphoric, reflecting the market's careful consideration of the dual proposition of HDFC lineage and the challenges of a maturing NBFC sector.
The IPO worth Rs 12,500 crore is the largest public offering by a non-banking entity in the domestic capital market, with investors bidding for 217.67 crore shares against 13.04 crore offered.
The issue consisted of a fresh issuance aggregating up to Rs 2,500 crore and an offer for sale of up to Rs 10,000 crore by the parent company HDFC Bank.
Post the IPO, HDFC Bank's stake in HDB Financial Services will reduce to 75% from the current 94%.
Ahead of the IPO opening, HDB Financial Services raised Rs 3,368.99 crore from anchor investors, which included Life Insurance Corporation of India and other prominent investors.
Total subscription of the issue stood at 16.69 times, with individual categories such as QIBs, NII, Employees, and Shareholders being subscribed 55.47 times, 9.99 times, 5.72 times, and 4.26 times respectively.
The retail investor portion was subscribed 1.41 times.

Statistics:

Issue price: Rs 740 per share
Opening price: Rs 835 apiece
Closing price on NSE: Rs 840.95 a share
Closing price on BSE: Rs 840.9 a share
Listing premium: 13%
Total subscription: 16.69 times
Number of shares subscribed: 217.67 crore shares
Issue size: Rs 12,500 crore
Fresh issuance: up to Rs 2,500 crore
Offer for sale: up to Rs 10,000 crore

Sources:

Contify.com