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– Listing flat at ₹740 would imply a one-year forward price-to-book multiple of 3.02x

– Listing at a 10% premium of ₹814 would mean a one-year forward price-to-book multiple of 3.33x

– HDB Financial will have a one-year forward price-to-book multiple of 3.63x in case it lists at a 20% premium to its issue price at ₹888.

India’s largest insurance company, Life Insurance Corporation of India (LIC) received majority of the shares issued in the anchor book. LIC was issued 6.53% of the total anchor book worth nearly ₹220 crore.

Among major global investors who participated in the anchor book included Blackrock, Baillie Gifford Pacific Fund, Government Pension Fund Global, Goldman Sachs, Templeton, the Abu Dhabi Investment Authority (ADIA) and others.

HDB Financial also issued 1.93 crore shares to 22 domestic mutual funds, amount to 42% of the total anchor book. These 22 funds had applied through 65 schemes, according to HDB Financial’s exchange filing.

– Total Assets: ₹1.09 lakh crore

– Gross Loan Book: ₹1.03 lakh crore

– Net Profit (after tax): ₹531 crore

– Capital adequacy ratio: 19.22%

– Gross Stage 3 ratio : 2.26%

– Liquidity coverage ratio: 161%

– Moderate asset quality

– Presence in unsecured and relatively riskier segments

– Strong liquidity

– Strong linkages with parent HDFC Bank

– Established presence in granular retail segment

– Comfortable capital structure and diversified resources profile

– To be utilised for Tier-1 capital augmentation

– For future capital requirements including onward lending

– To ensure compliance with regulatory requirements on capital adequacy

– Post IPO, co to remain subsidiary of HDFC Bank

– Has 1,680 branches & a diverse AUM mix, largely focused on retail & SME lending

– Vehicle finance and Loans Against Property among its largest loan portfolios

As per the current figures in the unlisted market, HDB Financial is commanding a premium between ₹68 to ₹74, according to reports.

If that holds, the shares can list at a premium of up to 10% from their issue price of ₹740 per share.

HDB Financial also become the second-most subscribed Indian IPO, whose value has been in excess of ₹10,000 crore. The 16.7x subscription was higher than Coal India (15.28x) but fell short of SBI Cards (26.54x).

The ₹12,500 crore issue closed for subscription last week and it received a healthy response, particularly from institutional investors and the high net worth individuals.

The QIB portion received bids for 55 times the shares on offer, while the non-institutional portion was also subscribed 10 times.

However, retail investors chose to exercise caution with the portion reserved for them getting bid for only 1.4 times the total shares on offer.

HDB Financial investors placed bids for 217.7 crore shares, in comparison to the 13.04 crore shares that were put up for bidding.

At the upper end of the price band of ₹700 – ₹740 per share, HDB Financial received bids worth ₹1.61 lakh crore, marginally higher than the ₹1.56 lakh crore that the Tata Technologies IPO had received back in 2023, but lower than Bajaj Housing Finance’s mega ₹3 lakh crore worth of bids last year.

The three-day, ₹12,500 crore issue of HDB Financial Services, received a healthy response from investors, particularly those from the institutional side.

Retail investors chose to exercise caution, although the portion reserved for them was also fully subscribed.

Good Morning!

Welcome to CNBC-TV18’s Live coverage of the HDB Financial Services listing.

The much awaited IPO is set to make its stock market debut today.

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