HDB Financial Services IPO: Anchor Round Mops Up Rs 3,370 Crore From LIC, Goldman Sachs, Others

HDB Financial services Ltd. on Tuesday raised nearly Rs 3,370 crore from institutional investors in the anchor round ahead of the opening of the initial public offering.

The HDFC Bank subsidiary allotted 4.55 crore equity shares to anchor investors at the upper price band of Rs 740 per share, a stock exchange filing said.

Some of the marquee investors include Life Insurance Corporation of India, ICICI Prudential MF, Nippon Life India MF, BlackRock, Axis MF, Aditya Birla Sun Life MF, UTI MF, Schroder International Selection Fund, Goldman Sachs Funds among others.

LIC secured 6.5% allocation by investing Rs 220 crore, the highest in the pre-IPO round.

Nearly 43% of the total allocation to anchor investors were allocated to 22 domestic mutual funds, which have applied through total of 65 schemes.

As per regulations, anchor investors have a lock-in period of up to three months after the allotment. Specifically, 50% of their shares are locked in for 90 days from the allotment date, while the remaining 50% are locked in for 30 days from the allotment date. This means they cannot sell these shares during these periods. These norms ensure the anchor investors' commitment and to prevent market volatility.