HDB Financial Becomes Most Subscribed Billion Dollar Indian IPOs
Due to intense bidding from both domestic and global investors, HDB Financial Services Ltd.'s $1.5 billion IPO is expected to become India's most sought-after big listing in at least four years.
Among the largest supporters of the stock were individual investors who placed bids exceeding one million rupees for shares
Additionally, the portion set aside for small investors was completely subscribed.
According to market data, the demand for HDB shares has increased by more than 15 times after the $1.4 billion IPO of food delivery company Eternal Ltd. was subscribed for more than 29 times.
A high interest for upcoming large Indian issuances may be indicated by the share sale, which coincides with a recovery in the benchmark NSE Nifty 50 Index. Less than five percent separates the index from its September top at this time.
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Anchor investors such as BlackRock funds, Life Insurance Corporation of India (LIC), and Norway's sovereign wealth fund contributed $392 million to HDB on Tuesday.
The sale coincides with the return of foreign investors to Indian stocks following a significant flight, drawn by high-profile block trades that frequently precede an IPO comeback.
According to a filing, Life Insurance Corporation of India (LIC), the country's largest insurer and institutional investor in the stock markets, has become the largest anchor investor in HDFC Bank's subsidiary HDB Financial Services' first public offering (IPO). LIC has been allotted around Rs 220 crore in the anchor book part, which amounts to 6.53 percent of the total allocations.
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Prior to its issuance at a price of Rs 740 per share, the NBFC raised a total of Rs 3,369 crore from a combined list of 141 anchor investors. Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Equity Savings Fund, Fidelity Investment Trust Fidelity Emerging Asia Fund, Government Pension Fund Global, Goldman Sachs Funds-Goldman Sachs India Equity Portfolio, ICICI Prudential Banking and Financial Services Fund, SBI Flexi Cap Fund, Baillie Gifford Pacific Fund A Sub Fund of Baillie Gifford Overseas Growth Funds ICVC, Kotak ELSS Tax Saver Fund, and a number of other funds are on the list.
LIC, which has previously backed a number of government disinvestment initiatives and public sector initial public offerings (IPOs), has placed bets on the historic Rs 27,870 crore Hyundai Motor India IPO (excluding the anchor book part) and the Brookfield REIT QIP.
JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal, and UBS are among the twelve investment banks that make up the HDB Financial IPO syndicate, according to the DRHP. The company counsel is Cyril Amarchand Mangaldas.