HDB Financial's ₹12,500cr IPO opens soon—How much you can bid
What's the story
HDB Financial Services, a subsidiary of HDFC Bank, is set to launch its ₹12,500 crore initial public offering (IPO) on June 25. The company has reserved a quota for its existing shareholders in this upcoming IPO. According to the Red Herring Prospectus (RHP) filed by the company, the offer comprises equity shares worth up to ₹1,250 crore for existing shareholders.
Sceanrio
Shareholders can subscribe to a minimum of 20 shares
Existing shareholders can subscribe to a minimum of 20 shares worth ₹14,800 and up to a maximum of 260 shares worth ₹1,92,400. Applications must be made in multiples of 20 shares or one lot. Retail investors can place bids starting from a minimum of 20 shares, up to a maximum of 260 shares.
Bidding specifics
Price band fixed at ₹700-740 per share
The bidding for HDB Financial's ₹12,500-crore public issue will open on June 25 and close on June 27. The company has fixed the price band at ₹700-740 per share, which is a steep 42% discount to its current valuation in the unlisted market. At the upper end of the price band, HDB Financial's market capitalization would be around ₹58,889 crore.
Timeline
Expected listing date
The allotment basis is likely to be finalized on June 30, with refunds and share credits taking place on July 1. The stock is expected to list on exchanges on July 2. Shares of HDB Financial are currently trading at a gray market premium (GMP) of ₹74 over the upper price band of ₹740. The estimated listing price for HDB Financial's IPO is ₹814, which would be a premium of 10%.
Major offering
Largest IPO of the year
The upcoming IPO will be the largest public offering in 2025 and the biggest since Hyundai Motor India's ₹27,000 crore issue in 2024. The offer includes a ₹10,000 crore offer for sale (OFS) by parent HDFC Bank and a fresh issue of ₹2,500 crore. HDFC Bank currently holds a 94.6% stake in the company and is expected to reduce its shareholding significantly after listing, as part of regulatory and capital optimization targets.