HBD Financial Services IPO: The IPO of HBD Financial Services is opening on June 25. However, 49,336 initial investors are in danger of losses up to 48 % from this Initious Public Offer (IPO) of Rs 12,500 crore.

There is so much damage

It has been revealed from its latest Red Herring Prospectus (RHP) filed on June 19. According to this, till June 19, 2025, 49,553 individual shareholders already had a stake in HDB Financial. In the company’s unlisted phase, he bought shares in the range of Rs 1,200 to Rs 1,350. Now that the IPO is priced at Rs 700-740 per share, it may cause loss of up to 38-48 percent to the initial investors.

Crores will be shocked

This means that if there is a list close to the IPO offer price band, then the investment value of the person buying the share will be half. In such a situation, if the individual investors bought 1 crore shares at a rate of Rs 1,250 per share, then their total investment is Rs 1,250 crore. Now the upper price band of IPO is Rs 740, so the value of the share will also be reduced from Rs 1,250 crore to Rs 740. That is, there can be a loss of Rs 510 crore.

2500 crore fresh issue in IPO

This IPO of HBD includes a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank Limited, selling 13.51 crore shares under the offer-for-cell (offs) window. HDFC bought these shares at a price of Rs 46.4 and if the IPO is listed on the upper price band of 740, the bank will have a profit of Rs 9,373 crore (before tax).

Let us know that the reason behind bringing the IPO of HBD Financial Services is RBI’s guideline. The RBI’s October 2022 circular states that it is necessary to have a list in the stock market for any NBFCs with upper layer category. Its deadline is till September, 2025. For this issue, investors will be able to bid till June 27.

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HBD Financial Services IPO: HBD Financial Services is coming with its IPO on 25 June 2025. By June 27, investors will be able to bid for this. However, anchor investors will be able to place their bets on this from 24 June. The price band for IPO has been fixed at Rs 700-740 per share. It is being told that this is the biggest IPO ever this year amidst the fluctuations in the stock market.

IPO size is Rs 12500 crore

This IPO of Rs 12,500 crore includes a fresh issue of Rs 2,500 crore and an offer for sale of Rs 10,000 crore by HDFC Bank Limited, which has a 94.3 percent stake in it. Through this IPO, HDFC Bank will sell shares up to Rs 100 billion ($ 1.15 billion) and HBD will also issue new shares of Rs 25 billion. The company has created a lot of 20 shares. That is, investors will be able to bid in at least 20 shares or its multiple. The post-money valuation of HBD on the upper price band is about 7.2 billion dollars (about 62,000 crore rupees).

Who is necessary listing in the stock market?

About 50 percent part of the public offer is reserved for Qualified Institutional Buyers, 15 percent non-institutional investors and the remaining 35 percent part is reserved for retail investors. In fact, the listing of HBD Financial Services is necessary under the October 2022 circular of RBI, which states that it is necessary to have a list in the stock market for any NBFCs with upper layer category. For this, there is a deadline till September 2025.

Money will be used in this work

After the issue is closed on 27 June, there will be an allotment of shares on June 30 and then on July 2, there will be a listing of shares on NSE and BSE. HBD Financial Services will use the amount received from the IPO to increase its capital base, so that the needs of capital can be met in future. Its total market capacity is between Rs 91,500-95,500 crore. HDB Financial Services, which started in 2007, is a non-banned financial company, which provides personal loans, business loans to its customers. It is the subsidiary company of HDFC Bank.

IPO GMP

The IPO of HBD Financial Services is trading in a premium of Rs 83 in the gray market. On June 18, it was trading at a premium of 104.50 in the gray market.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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