Upcoming IPO: According to final figures, HDB Financial Services' three-day issue was oversubscribed 16.69 times. Investors applied for 217.7 crore shares against a total of 13.04 crore shares.
HDB Financial Services, a subsidiary of HDFC Bank, has now reached investors' demat accounts. Shares have been credited to investors' accounts on Tuesday, and the company is going to be listed on both the BSE and NSE exchanges on Wednesday, July 2nd. According to reports in the grey market, its listing price may be around 9 percent higher than the issue price.
IPO Received Tremendous Response
The three-day IPO of HDB Financial Services received tremendous support from investors. This issue was subscribed a total of 16.69 times. The company offered a total of 13.04 crore shares, while investors demanded 217.7 crore shares. This clearly indicates that there was considerable enthusiasm in the market regarding this IPO.
QIB Investors Showed the Most Interest
The highest bids came from the Qualified Institutional Buyers (QIB) category, where the issue was subscribed more than 55 times. Apart from this, there was a good response from Non-Institutional Investors (NII), existing shareholders of HDFC Bank, and the employee category of HDB. The retail investors' portion was also fully subscribed, although it was less than the other categories.
Total Value of the IPO
This IPO has become the second-largest public offer of this year. A total of ₹12,500 crore has been raised under it. Of this, ₹2,500 crore came under the fresh issue, while ₹10,000 crore was raised through the Offer for Sale (OFS). The price band of this issue was fixed at ₹700 to ₹740 per share.
Also Surpassed Tata Technologies
In terms of subscription, HDB Financial Services' IPO surpassed the record of Tata Technologies, which came in 2023. HDB attracted more bids than the response Tata Technologies' IPO received. Bids of over ₹1.61 lakh crore were placed in the issue, which in itself is a b indicator.
What is the Company's Business Model?
HDB Financial Services is a non-banking financial company that provides loans to small businesses, people associated with the transport sector, and general consumers across the country. The company's work is divided into three main areas: Enterprise Lending, Asset Finance, and Consumer Finance. Due to this model, the company has a presence even in small towns and rural areas.
Network Spread Across the Country
HDB Financial Services' network is spread across the country. The company has maintained a b presence in the NBFC sector for many years and provides its services in collaboration with HDFC Bank branches. The company benefits from this network to perform better in the midst of competition in the market.
Who are the Company's Customers?
HDB's customers are mainly small shopkeepers, auto-finance customers, credit card consumers, and small entrepreneurs. The company's policy has been to maintain direct contact with customers for easy documentation and fast loan processing, which has consistently built customer trust.
Growth in the Last Few Years
HDB has shown consistent growth in the past years. However, its growth was affected during the time of COVID-19, but later the company regained momentum by improving its loan portfolio. By taking the help of digital lending platforms and technology, HDB is now capable of reaching more and more customers.
Status of Investors Investing in IPO
For the investors who have been allotted shares in the IPO, this listing day will be very important. According to market experts, the listing of this IPO can be above ₹800, although the final price will depend on the stock market situation and demand.
Market Experts' View on this IPO
There is considerable discussion in the market that HDB's IPO is not only benefiting from the image of its parent company HDFC Bank, but its business model's stability and future prospects are also attracting investors.
