HDB Financial Services’ $1.5 Billion IPO Fully Subscribed on Day 2

HDB Financial Services, a subsidiary of HDFC Bank and a leading non-banking financial company (NBFC) in India, has witnessed overwhelming investor interest in its highly anticipated $1.5 billion Initial Public Offering (IPO). According to exchange data, the IPO was fully subscribed by the end of the second day of bidding, signaling robust demand from institutional and retail investors alike.

 

Key Highlights:

 

The $1.5 billion IPO, one of the largest in the Indian financial sector this year, achieved full subscription on Day 2, reflecting strong market confidence in HDB Financial Services’ growth prospects.

 

The offering comprises a mix of fresh equity issuance and an offer for sale by existing shareholders, including parent company HDFC Bank.

 

The Qualified Institutional Buyers (QIB) portion saw particularly strong demand, with bids exceeding the allocated quota, while the Non-Institutional Investor (NII) and Retail segments also reported healthy oversubscription.

 

Analysts attribute the robust response to HDB’s solid financial performance, diversified loan portfolio, and its strategic importance within the HDFC group.

 

Proceeds from the IPO are earmarked for bolstering the company’s capital base, expanding lending operations, and supporting digital transformation initiatives.

 

The successful subscription is expected to set a positive tone for upcoming NBFC and financial sector IPOs in India, highlighting renewed investor appetite for quality financial stocks.

 

Final allotment and listing dates are expected to be announced soon, with market participants closely watching for the debut performance.

 

Source: National Stock Exchange Data, Business Standard