HDB Financial Services stock surges nearly 14 pc in debut trade; mkt valuation tops Rs 69,758 cr

Shares of HDB Financial Services Ltd, a subsidiary of HDFC Bank, on Wednesday ended with a premium of nearly 14 per cent against the issue price of Rs 740.

The company's stock began trading at Rs 835, a 12.83 per cent jump from the issue price on the BSE. During the day, it surged 14.92 per cent to Rs 850.45.

Shares of the non-banking financial company finally ended at Rs 840.90, up 13.63 per cent.

At the NSE, shares of the firm were listed at Rs 835. The stock ended at Rs 840.95, a premium of 13.64 per cent.

The company commanded a market valuation of Rs 69,758.27 crore.

In traded volume terms, 78.45 lakh shares of the firm were traded at the BSE and 809.66 lakh shares on the NSE during the debut session.

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 promoter HDFC Bank.

HDFC Bank's Managing Director and CEO Sashidhar Jagdishan on Wednesday said the lender will continue to support its subsidiary HDB Financial Services post-listing as well.

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.)