With the HDFC group's latest offering, HDB Financial Services' initial public offering all set to take flight as it receives a green signal from SEBI, past listings from the group's heavyweight stock listings offer a glimpse into investor response on debut.
HDFC Bank Ltd., which listed back in May 1995 at Rs 4 per share, gained 12.5% on its listing day and has since scaled to an all-time high of Rs 1,978.90.
HDFC Asset Management Company made its debut in August 2018 at Rs 1,726.20, ending its first day with a 6.8% gain. The stock went on to touch a peak of Rs 4,939.40.
Meanwhile, HDFC Life Insurance Co., listed in November 2017 at Rs 310, posted a 19% jump on debut and has hit a high of Rs 791.10 since then.
The listing day performance of HDFC companies has ranged from solid to stellar, adding to the anticipation around HDB Financial's upcoming market debut.
The buzz around HDB Financial's IPO stems from its parentage: it is a non-banking financial company promoted by HDFC Bank, which holds nearly a 94% stake in the entity.
The maiden offer consists of a fresh issue of shares worth Rs 2,500 crore and an offer-for-sale component worth Rs 10,000 crore, bringing the total issue size to Rs 12,500 crore. The price band for the IPO is yet to be announced.
About The Company
HDB Financial Services was incorporated in 2007 and has since evolved into a prominent retail-focused non-banking financial company in India. It operates a wide distribution network with over 1,770 branches across 31 states and union territories.
A significant portion comprising 71% of HDB Financial's loan portfolio is secure. In addition to lending, the company also provides a range of services, including back-office operations, collections, sales support, and the distribution of insurance products.
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