According to the latest update, the retail part was subscribed to 79%, 4.01 times in the non-institutional investor (NII) segment, and the eligible institutional buyer (QIB) category is 108%. The employee’s quota saw a subscription 36.3636 times, while the shareholder reservation part was subscribed 2.24 times.
In the gray market, HDB shares were trading at a premium of Rs 60-62, which increased by Rs 53-55 on 2 days. This indicates an 8% gray market premium (GMP) compared to 7% earlier.
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Next to the IPO launch, HDB Financial Services has received Rs. 3,369 crores Raised. By allocating a share of Rs 45 crore.
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HDB Financial IPO Details
The public issue offers a fresh equity issue of Rs 2,500 crore and a sales of Rs 10,000 crore (OFS) by HDFC Bank, which currently holds 95.5% stake in the company. The price band has been fixed at Rs 700-740 per share.
At the upper end of the price band, IPO values HDB Financial 3.7 times the book value of its estimated fiscal year 25. Analysts justify the valuation by citing the company’s operational strength and support of Parent HDFC Bank.
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Should you subscribe to HDB Financial Services IPO?
At the upper end of the price band, HDB Financial’s IPO costs the company 7.7 times the book value after its fiscal year 25, one level analysts consider its solid financial performance and the brand support of Parent HDFC Bank.
Some brokerage companies have issued ‘subscribe’ ratings for IPOs. SBI Securities, Ventura Securities and Anand Rathi published the company’s strong fundamentals, steady property quality and the possibility of long -term growth.
In its note, Ventura Securities said, “We believe that the cost of the company is quite the cost of IPOs, given the company’s profitability, strong risk management and capital adequacy.”
Anand Rathi echoed this point of view, commenting, “IPO offers the opportunity to invest in high quality, retail-centered NBFC that benefits from HDFC Bank access, reputation and systems. The improvement return ratio and earnings make it a sleek long-term condition.”
HDB Financial Services IPO key dates
The IPO opened for a subscription on June 25 and will close on June 27. The allocation is expected to be finalized on June 30, with a list fixed on NSE and BSE on July 2.
(Connection: The recommendations, suggestions, views and views of the experts are their own. This does not represent opinions of economic time)
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