jumped over 4% to Rs 874.90 on Thursday, a day after its successful listing on the stock exchanges. The stock is currently trading with a market capitalization of Rs 72,520.72 crore.The company made its stock
market debut on July 2, listing at a premium of 12.84% over its issue price of Rs 740. The shares opened at Rs 835 on both NSE and BSE, signaling strong investor interest.
The Initial Public Offering (IPO), valued at Rs 12,500 crore, comprised a fresh issue of Rs 2,500 crore and an offer-for-sale of Rs 10,000 crore by existing shareholders. The IPO closed on June 27 to overwhelming demand, being subscribed 17.65 times overall. Institutional investors, especially Qualified Institutional Buyers (QIBs), led the charge, subscribing to their quota 31.73 times.
The IPO attracted bids totaling over Rs 1.61 lakh crore, making it the second-most subscribed large IPO (for issues over Rs 10,000 crore) in recent times, following Tata Technologies. Although it did not surpass the record-breaking Rs 3 lakh crore-plus bids for Bajaj Housing Finance, HDB Financial Services’ listing demonstrated robust appetite compared to other recent non-banking financial company (NBFC) IPOs.
Prashanth Tapse, Senior Vice President at Mehta Equities, believes that shareholders who received allotments should consider holding the stock for the medium to long term. For investors who missed the initial allotment, any post-listing price dips could present good buying opportunities.
He added, “Long-term growth potential in India’s NBFC space, especially in underpenetrated retail and SME lending, makes HDB an attractive proposition,”The IPO drew over Rs 1.61 lakh crore in bids, making it the second-most subscribed large IPO (over Rs 10,000 crore), after Tata Technologies. Although it didn’t match Bajaj Housing Finance’s record Rs 3 lakh crore bids, it still outpaced recent NBFC listings in terms of demand.At the upper end of the price band, HDB Financial is valued at a P/E of 28.15x based on FY25 earnings. The implied market cap is around Rs 61,253 crore. With a GMP of Rs 71, the expected listing price could hover around Rs 811.(: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
