Latest news with #HDBFinancial
The Hindu
6 hours ago
- Business
- The Hindu
HDB Financial Services launches ₹12,500 crore IPO as regulatory issues persist
HDB Financial Services on Friday (June 20, 2025) launched a ₹12,500-crore initial public offering (IPO), even as some regulatory issues surrounding the business persist. The company has set a price band of ₹700-740 for the fund raise, which is reportedly at a 66 per cent discount to the price of the share in the grey market. The IPO includes a ₹2,500-crore fresh capital raise and ₹10,000 crore offer for sale (OFS) from its parent HDFC Bank, which will lead to a 20 per cent reduction in the promoter shareholding in the entity to 75 per cent. HDB Financial, which had over ₹1 lakh crore in assets under management as of March 2025, is required to list by September this year as part of a Reserve Bank of India (RBI) listing mandate for bigger NBFCs, but the central bank's October 2025 proposal on forms of business will weigh on the investors. As per the circular, a bank needs to ensure that none of its subsidiaries undertakes the same activities as it. If a bank wants to continue with such arrangements, its shareholding in the NBFC is capped at 20 per cent. HDB Financial's Non-Executive Chairman Arijit Basu said "there is nothing which is uncommon" between HDFC Bank and the IPO-bound company, and stressed that the RBI's proposals have no bearing on HDB Financial as the onus is on the bank on whether it wants to continue with a business or not. Ramesh G, the managing director and chief executive, said HDB Financial has built the business, including enterprise loans, consumer loans, and asset finance from ground-up since 2008 and stressed that it operates independently in such a way that no sourcing is done from the promoter and the technology stack is also different. On the low valuations, a banker explained that typically, the grey or unlisted market's expectations do not influence the pricing of an issue. To a specific question on whether regulatory uncertainties had a bearing on the price band, another banker admitted that there were discussions and the price has been determined after extensive investor roadshows over the last few days. The banker said mutual funds, insurance companies, and foreign institutional investors are keen to subscribe to the issue, and claimed that HDB Financial will have one of the best anchor investor allotments when the details are disclosed next Tuesday. The public issue for shares of ₹10 face value — to be subscribed in multiples of 20 — will be open from June 25-27. The company management said improving the asset quality will be among the top priorities for the management going forward. The HDB Financial IPO is the second biggest in last three years after South Korean automaker Hyundai's ₹27,000-crore issue. Others, including HDB Financial's peer Tata Capital, Korean electronics company LG, and Indian startups Phonepe and Lenskart are among the other major issues lined up for listing. Mr. Ramesh said the RBI mandate to list by September had some bearing on the timing of the issue.
Yahoo
11 hours ago
- Business
- Yahoo
India's HDB Financial IPO pricing not influenced by 70% premium in 'grey market', bankers say
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran MUMBAI (Reuters) -The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday. Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'. "This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue. "We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai. HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier. The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank, holds a 94% stake in the firm. The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue. At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance and Shriram Finance. India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings. So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG. Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 trades nearly 6% below its record high from last September. The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said. ($1 = 86.6040 Indian rupees) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Mint
11 hours ago
- Business
- Mint
Indias HDB Financial IPO pricing not influenced by 70% premium in grey market, bankers say
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran MUMBAI, June 20 (Reuters) - The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday. Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'. "This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue. "We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai. HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier. The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank, holds a 94% stake in the firm. The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue. At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance and Shriram Finance . India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings. So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG. Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 trades nearly 6% below its record high from last September. The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said. ($1 = 86.6040 Indian rupees) (Reporting by Siddhi Nayak and Vivek Kumar M in Mumbai and Bharath Rajeswaran in Bengaluru, additional reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
Time of India
11 hours ago
- Business
- Time of India
Rupee gains 14 paise to 86.59 vs US dollar; oil price dip, FII inflows support recovery, traders eye HDB IPO-linked inflows next week
The rupee appreciated by 14 paise to close at 86.59 against the US dollar on Friday, helped by a fall in global crude oil prices, a weaker dollar overseas, strong domestic equities and sustained foreign fund inflows. At the interbank foreign exchange market, the rupee opened at 86.65 and moved in a narrow range of 86.55 to 86.67 before settling at 86.59 (provisional), marking a recovery from Thursday's over two-month low close of 86.73. The rupee had declined 69 paise over the past three sessions, PTI reported. According to forex traders, the local currency was buoyed by softening oil prices after President Donald Trump signalled a two-week window for deciding on potential US involvement in the Israel-Iran conflict. 'The local currency was comforted by a dip in oil prices after the White House said President Donald Trump will decide in the next two weeks whether the US will get involved in the Israel-Iran war,' said Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers. Sharma added that while the rupee eased on the day, it had still posted a little over 1% decline for the month so far, with the bulk of the weakness triggered after Israel's recent strikes on Iranian targets that pushed Brent crude to a five-month high. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eat 1 Teaspoon Every Night, See What Happens A Week Later! [Video] getfittoday Undo Traders are eyeing the HDB Financial IPO for possible foreign inflows. 'Expectation that HDB Financial IPO is likely to witness significant inflows is seen as positive for the rupee,' Sharma said, adding that a broad 86.20-86.70 range may hold early next week. The dollar index was trading 0.30% lower at 98.60, while Brent crude fell 2.36% to $76.99 per barrel. Meanwhile, the 30-share BSE Sensex surged 1,046.30 points to 82,408.17, and the NSE Nifty gained 319.15 points to 25,112.40. Foreign institutional investors were net buyers to the tune of Rs 934.62 crore on Thursday, as per exchange data. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
11 hours ago
- Business
- The Hindu
Rupee rises 14 paise to close at 86.59 against U.S. dollar
The Rupee appreciated by 14 paise to close at 86.59 (provisional) against the U.S. dollar on Friday (June 20, 2025) aided by a fall in global crude oil prices and a weakening greenback. A strong show in the domestic equity markets and FII inflows further supported the local unit, according to forex traders. At the interbank foreign exchange, the Rupee opened at 86.65 against the U.S. dollar and traded in a narrow range of 86.55-86.67 before settling at 86.59 (provisional), up 14 paise. The Rupee had lost 30 paise to close at an over two-month low of 86.73 against the dollar on Thursday (June 19, 2025), logging a combined loss of 69 paise during the past three sessions. "The Rupee eased today (June 20, 2025) but declined a little more than 1% this month so far, with a large portion of its decline occurring after Israel attacked targets in Iran last Friday(June 13, 2025). The attacks also raised concerns about disruption of global oil prices, sending Brent crude oil futures to a five-month peak around $79 per barrel," Maneesh Sharma, AVP-Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said. "The local currency ... was comforted by a dip in oil prices after the White House said President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war," Mr. Sharma said. Meanwhile, expectation that HDB Financial IPO is likely to witness significant inflows is seen as positive for the Rupee as broad range of 86.20-86.70 may persist during start of the next week, he added. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.30% lower at 98.60. In the domestic equity market, the 30-share BSE Sensex jumped 1,046.30 points to settle at 82,408.17, while Nifty surged 319.15 points to 25,112.40. Brent crude, the global oil benchmark, declined 2.36% to $76.99 per barrel in futures trade. Foreign institutional investors (FIIs) purchased equities worth ₹934.62 crore on a net basis on Thursday (June 20, 2025), according to exchange data.
