HDB Financial Services' stock lists with nearly 13 pc premium

Shares of HDB Financial Services Ltd, a subsidiary of HDFC Bank, on Wednesday got listed with a premium of nearly 13 per cent against the issue price of Rs 740.

The company's stock started trading at Rs 835, a jump of 12.83 per cent from the issue price on the BSE. Later, it surged 14.29 per cent to Rs 845.75.

At the NSE, shares of the firm listed at Rs 835.

The company commanded a market valuation of Rs 69,658.72 crore during the initial trade.

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 the promoter HDFC Bank.

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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)