Shares of HDB Financial Services, a subsidiary of HDFC Bank, rose over 4.5% on July 3 a day after the NBFC firm got listed on stock exchanges.
At 9:40 am on July 3, HDB Financial Services shares were trading 4.58% higher at Rs 879.45 apiece. The market capitalisation of the stock rose to nearly Rs 73,000 crore.
In late evening of July 2, HDFC Bank informed exchanges that it has successfully completed the sale of 13.51 crore equity shares worth Rs 9,814 crore in its subsidiary and retains 74.19% stake in it.
"The Bank sold 13,51,35,135 shares of face value of Rs. 10 each of HDBFS in the IPO, post which the shareholding of the Bank in HDBFS has reduced to 74.19% of its total paid-up equity share capital," said HDFC Bank in a regulatory filing.
Shares of HDB Financial Services Ltd on July 2 ended with a premium of nearly 14% against the issue price of Rs 740.
The company's stock began trading at Rs 835, a 12.83% jump from the issue price on the BSE. During the day, it surged 14.92% to Rs 850.45.
Shares of the non-banking financial company finally ended at Rs 840.90, up 13.63%.
The Rs 12,500-crore initial share sale of HDB Financial Services got subscribed 16.69 times on the closing day of bidding on Friday last week amid encouraging participation from institutional buyers.
The mega initial public offer (IPO) had a price band of Rs 700-740 per share.
The IPO was 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.
HDFC Bank's Managing Director and CEO Sashidhar Jagdishan on Wednesday said the lender will continue to support its subsidiary HDB Financial Services post-listing as well.
The company proposes to utilise proceeds from the fresh issue to strengthen its tier-I capital base. This will support future capital needs, including additional lending, to support business growth.
The HDB Financial IPO was the second-biggest in the last three years after South Korean automaker Hyundai's Rs 27,000-crore offer.
HDB Financial delivers a wide range of solutions through Enterprise Lending, Asset Finance and Consumer Finance.
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