Share Market News / Why did people rush to buy shares of this IPO, 4 years old record was broken

HDB Financial Services Limited's IPO has created a stir in the market. This $1.5 billion IPO was subscribed 16.69 times by investors. More than 217 crore bids were received against a total of 13 crore shares. This became the most subscribed billion dollar IPO in the last four years.

Share Market News: Once again the IPO market is in the headlines and this time the reason for this is the much-awaited IPO of HDB Financial Services Limited. This public issue of about $ 1.5 billion has attracted tremendous investors. According to the data, this IPO received bids of about $ 22 billion, that is, this issue was subscribed about 17 times.

Strong trend of investors

This IPO of HDB Financial Services Limited, a wholly-owned subsidiary of HDFC Bank, got 16.69 times subscription. According to NSE data, bids of more than 217.67 crore shares were received against the proposed 13.04 crore shares.

Qualified Institutional Investors (QIBs) Share: 55.47 times subscribed

Non-Institutional Investors (NIIs) Share: 9.99 times subscribed

Retail Investors (RIIs) Share: 1.41 times subscribed

This IPO has seen tremendous demand at a time when the Indian stock market is in a bullish phase. In the last four trading sessions, the Sensex has risen 2,162 points and the Nifty 665.9 points.

Price and issue size

HDB Financial Services has fixed a price range of Rs 700-740 per share. At the upper price, the company's valuation stands at Rs 61,400 crore. This includes a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank.

At present, HDFC Bank holds 94.36% stake in the company. The amount raised from the fresh issue will be used to strengthen the capital base and increase loan disbursement.

Most subscribed IPO of the last four years

This IPO of HDB Financial has become the most subscribed billion dollar IPO in the last four years. Earlier:

Eternal Limited's $1.4 billion IPO: 29 times subscribed
PowerGrid Infra: 4.8 times
Swiggy: 3.6 times
LIC: 3 times
Hexaware: 2.7 times
NTPC Green: 2.4 times
Paytm: 1.8 times

Tremendous activity in the IPO market throughout the week

This week was very busy for the Indian IPO market. All the five IPOs launched in the last five days received a great response from investors. These include:

HDB Financial Services
Kalpataru Projects
Ellenberry Industrial Gases
Sambhav Steel Tubes
Globe Civil Projects

The total size of these five IPOs was Rs 15,600 crore, while the total subscription was more than Rs 1.85 lakh crore, i.e. an average subscription of 12 times.