HDB Financial Services IPO opens on June 25: Institutional investors pick Rs 3,369 crore worth shares via anchor book

HDB Financial Services IPO

HDB Financial Services, the subsidiary of country's largest private sector lender HDFC Bank, has raised Rs 3,369 crore via anchor book launched on June 24, a day before the Rs 12,500-crore IPO opens for subscription.

The maiden public issue, which comprises of fresh issuance of shares worth Rs 2,500 crore and an offer-for-sale of Rs 10,000 crore worth shares by HDFC Bank, will open for subscription for all investors on June 25, and remain open till June 27. The price band for the offer is Rs 700-740 per share.

The retail-focussed non-banking finance company has finalised the allocation of 4.55 crore equity shares to anchor investors at a price of Rs 740 apiece, as per its filing to exchanges.

Marquee global investors participated in the anchor book, including Blackrock, Baillie Gifford Pacific Fund, Government Pension Fund Global, Goldman Sachs, Schroder International, Bonitas Pooled Investment Fund, Fidelity, Abu Dhabi Investment Authority, Ashoka Whiteoak, Allianz Global, Templeton, Jupiter Global Fund, Societe Generale, and Florida Investment System.

Several domestic institutional investors like Life Insurance Corporation of India, ICICI Prudential Mutual Fund, SBI Mutual Fund, Kotak Mahindra AMC, Axis Mutual Fund, Aditya Birla Sun Life AMC, DSP Mutual Fund, Mirae Asset, UTI AMC, Templeton India, Franklin India, Tata Mutual Fund, HSBC MF, Motilal Oswal AMC, Bandhan Mutual Fund, Sundaram MF, Axis Max Life Insurance, and JM Financial Mutual Fund also made big investment in HDB Financial Services via anchor book.

"Out of the total allocation of 4.55 crore equity shares to anchor investors, 1.93 crore shares worth Rs 1,434.8 crore were allocated to 22 domestic mutual funds which have applied through their 65 schemes," HDB Financial in its filing to exchanges said.

HDB Financial Services that seeks valuation of Rs 61,253 crore at the upper price band intends to utilise fresh issue proceeds for augmentation of its Tier-I capital base to meet future capital requirements including onward lending, in FY26. At the end of FY25, its Tier-I capital was Rs 16,406 crore, increasing from Rs 13,412.8 crore in FY24.

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The company offers a large portfolio of lending products through its three business verticals - enterprise lending, asset finance and consumer finance. It derives benefits from HDFC Bank’s parentage, including brand recognition, while still establishing a set-up independent from HDFC Bank across various functions including sourcing, underwriting, operations and risk management functions.

The merchant bankers handling the HDB Financial Services IPO are JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and UBS Securities India.