HDB IPO Last Day Rush: 17.5x Subscribed, GMP at 8%

 

HDB Financial Services IPO Sees Last-Day Surge, Subscribed 17.5x: GMP at 8%

Investors rushed on the final day (June 27th) to subscribe to the highly anticipated HDB Financial Services IPO, pushing the overall subscription to a robust 17.5 times by closing. The ₹12,500 crore offering – the largest NBFC IPO this year and among India's top five in two decades – had already been fully subscribed within the first two days.

Despite the overwhelming investor demand, a notable development has been the significant cooling of the Grey Market Premium (GMP). Currently trading at around 8%, the GMP has fallen nearly 6% since the IPO opened on June 25th. This dip contrasts sharply with the strong subscription figures.

Key IPO Details:

Size: ₹12,500 crore (₹2,500cr fresh issue + ₹10,000cr OFS by HDFC Bank)

Price Band: ₹700 - ₹740 per share

Promoter Holding: HDFC Bank currently owns over 94% pre-IPO.

Use of Proceeds: Fresh issue funds will fuel expansion into Tier II & Tier III cities.

Closing Date: June 27, 2023.

The strong subscription indicates significant market interest in the HDFC Bank-promoted NBFC. However, the declining GMP highlights potential investor caution or perceived risks, making a careful assessment crucial before applying. Analysts recommend scrutinizing the company's prospects against the offer price and highlighted risks.

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