HDB Financial Services' Rs 12,500 crore IPO to open on June 25: Key dates, price band, and investor details

HDB Financial Services, India's largest NBFC, is set to open its IPO on June 25. The issue aims to raise Rs 12,500 crore, with a price band of Rs 700 to Rs 740 per equity share. The allotment date is expected to be June 30, and the tentative listing date is July 2. The minimum lot size for retail investors is 20 shares, amounting to Rs 14,000.

HDB Financial Services, India's largest Non-Banking Financial Company (NBFC), is set to open its Initial Public Offering (IPO) on June 25. The IPO aims to raise Rs 12,500 crore, with a price band of Rs 700 to Rs 740 per equity share [2]. The allotment date is expected to be June 30, and the tentative listing date is July 2. The minimum lot size for retail investors is 20 shares, amounting to Rs 14,000.

The IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an Offer For Sale (OFS) of Rs 10,000 crore by promoter HDFC Bank. At present, HDFC Bank holds a 94.36 percent stake in HDB Financial Services [2]. The company plans to utilize the proceeds from the fresh issue to strengthen its Tier-I capital base, supporting future capital needs and business growth [1].

The IPO will open for subscription on June 25 and conclude on June 27. Anchor investors will bid on June 24. Half of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors [2]. A dozen book-running lead managers are managing the IPO [2].

HDB Financial Services has reserved shares worth Rs 1,250 crore for existing shareholders. To become eligible for bidding through the shareholder quota, one must hold shares of HDFC Bank. The GMP (Grey Market Premium) for HDB Financial Services shares is currently more than 10 percent, with shares trading at a premium of Rs 90 in the grey market [3].

The IPO follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years. After the IPO, HDB Financial Services will continue to be a subsidiary of HDFC Bank [2].

References:
[1] https://www.financialexpress.com/market/ipo-news-hdb-financial-services-ipo-to-open-on-june-25-check-issue-details-objectives-other-key-details-3886122/
[2] https://economictimes.indiatimes.com/markets/ipos/fpos/hdb-financial-services-sets-ipo-price-band-at-rs-700-740/-share/articleshow/121966668.cms
[3] https://www.etnownews.com/markets/hdb-financial-ipo-shareholder-quota-latest-gmp-subscription-date-registrar-all-details-article-152127887