HDB Financial Services IPO Opens On June 25: GMP Up Nearly 50% In Two Days, Check Key Details
The Rs 12,500-crore mainboard issue will remain open for subscription from June 25 to June 27.
The initial public offering of HDB Financial Services Ltd. is going to be one of the biggest IPOs by a non-banking finance company (NBFC) in India. Ahead of its launch, the grey market premium (GMP) for the IPO has seen a significant rise in the past two days.
The GMP for HDB Financial Services IPO has advanced by around 49%, or Rs 22.5 per share in the last two days.
According to InvestorGain, the GMP for the issue stood at Rs 70 per share as of 2:28 p.m. on June 24. The latest GMP indicates an estimated listing price of Rs 810 per share at a premium of 9.46% compared to the upper limit of the IPO price band.
The issue saw its highest GMP of Rs 104.5 per share on June 18. It had declined from Rs 91 on June 20 to Rs 47.5 on June 22. Since then, the GMP has been on an upward trend, rising to Rs 70 apiece currently.
HDB Financial Services IPO: Key Details
The HDB Financial Services IPO is a book-building issue of Rs 12,500 crore. The mainboard IPO includes a fresh issue of 3.38 crore shares worth Rs 2,500 crore and an offer for sale of 13.51 crore shares worth Rs 10,000 crore.
As per its website, it has AAA ratings from CARE and CRISIL for its long-term debt and bank facilities. It also has an A1+ rating for its short-term debt and commercial papers. Its businesses include lending and BPO services. HDB Financial Services is a subsidiary of the HDFC Bank. Following the IPO, HDFC Bank’s stake in the NBFC will come down to 74%.
To participate in the IPO, retail investors can bid for a single lot size of 20 shares, requiring an investment of Rs 14,800. Small Non-Institutional Investors need to bid for at least 14 lots worth Rs 2,07,200. Big Non-Institutional Investors are required to bid for at least 68 lots, leading to an investment of Rs 10,06,400.
The price band for the IPO has been set between Rs 700 and Rs 740 per share.
The subscription window for the issue is open from June 25 to June 27. Allotment of shares is expected to be completed on June 30. The company will transfer shares to the Demat accounts of successful bidders on July 1. The refunds for non-allottees will be processed on the same day.
For Qualified Institutional Buyers (QIBs), 44.92% of the shares have been reserved. Non-Institutional Investors will be allocated 13.48% of the net issue. The NBFC has set aside 31.44% of the issue for retail investors. The employee quota comprises 0.16% of the net issue.
BNP Paribas, JM Financial Ltd., Bofa Securities India Ltd., Goldman Sachs (India) Securities Pvt., HSBC Securities & Capital Markets Pvt., IIFL Capital Services Ltd., Jefferies India Pvt., Morgan Stanley India Company Pvt., Motilal Oswal Investment Advisors Ltd., Nomura Financial Advisory And Securities (India) Pvt., Nuvama Wealth Management Ltd., UBS Securities India Pvt. are the book running lead managers of the HDB Financial IPO.
MUFG Intime India Pvt. is the registrar of the issue.
Use Of Proceeds
The company will use proceeds from the IPO to meet its capital requirements in the future.
Financials
The company saw an 11.6% year-on-year (YoY) decline in profit after tax to Rs 2,175.92 crore in FY25 from Rs 2,460.84 crore in FY24. Total income rose 15% YoY to Rs 16,300.28 crore in FY25 from Rs 14,171.12 crore in FY24.
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
