HDB Financial shares settled nearly 14 percent higher on the debut day on National Stock Exchange (NSE) on Wednesday, July 2.
The stock settled at Rs 840.25 per share on the NSE, up 13.55 percent over its issue price. The total market cap of the company on the first day of listing of shares stood at Rs 69,758.27 crore.
Earlier in the day, the stock listed at a decent premium of about 13 percent over its IPO price The listing of the shares of the subsidiary of HDFC Bank was better than the expectations in the grey market which had priced in a 8-10 percent gains on the listing day for the allotted investors.
Shares of HDB Financial Services listed at Rs 835 per share on the NSE, a premium of 12.84 percent over its issue price. The Rs 12,500-crore issue had a price band of Rs 700-740 per share.
On the BSE too, the shares were listed at Rs 835 apiece, a premium of 12.84 percent.
The IPO of HDB Financial was open for subscription between June 25 and June 27 and saw full subscription by the second day. The issue concluded 16.69 times subscription, with strong interest from institutional investors.
HDB Financial shares: Should you buy, sell or hold?
On post-listing strategy, Prashanth Tapse, Research Analyst at Mehta Equities advised investors who missed the allotment to consider buying on dips if the stock sees short-term volatility. "HDB Financial is well-placed for a structural credit upcycle in India and is suitable for investors with a 3-5 year view," he said.
Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers, advised that investors may consider holding stock for long-term post listing.
HDB Financial shares: How should you trade?
The non-banking financial company (NBFC) operates with a diversified loan portfolio, including enterprise, consumer and asset financing. It has a wide presence across India with 1,771 branches and more than 60,000 employees.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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