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HDB Financial Services' stock surged over 4.5% to Rs 879.45, reaching a market capitalization of nearly Rs 73,000 crore, a day after its successful listing.
Just a day after making a strong debut on the stock market, HDB Financial Services, the NBFC arm of HDFC Bank, on Thursday (July 3) continued to impress investors. The stock rose over 4.5%, trading at Rs 879.45 by 9:40 am. With that, the company's market cap touched nearly Rs 73,000 crore.
The rally comes on the back of an already stellar listing. On July 2, HDB shares hit the market at Rs 835, up nearly 13% from the issue price of Rs 740. By the end of the day, it had settled at Rs 840.90, clocking a solid 13.63% gain. At one point, the stock even touched Rs 850.45.
The market excitement was fueled by the success of HDB’s recent IPO, which drew strong investor interest. The Rs 12,500 crore issue saw a whopping 16.69 times subscription, especially from institutional buyers looking to ride the company’s growth story.
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In a late-night announcement on July 2, HDFC Bank revealed it had raised Rs 9,814 crore by selling 13.51 crore shares in the IPO. Despite the sale, it still holds a significant 74.19% stake in HDB Financial.
"The Bank sold 13,51,35,135 shares of face value Rs 10 each... post which our shareholding now stands at 74.19%," HDFC Bank said in its regulatory filing.
The IPO was a mix of a Rs 2,500 crore fresh issue and a Rs 10,000 crore offer-for-sale by HDFC Bank. The fresh capital will help HDB Financial boost its Tier-I capital, supporting future lending and business expansion.
HDFC Bank's MD & CEO Sashidhar Jagdishan reassured investors that the bank will continue to back HDB Financial even after the listing, reinforcing its long-term confidence in the company.
This IPO is being called one of the biggest in recent years — second only to Hyundai's Rs 27,000 crore offer.
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