Latest news with #RedHerringProspectus
Hans India
6 hours ago
- Business
- Hans India
HDB Financial IPO leaves early investors facing big losses
New Delhi: The upcoming IPO of HDB Financial Services, worth Rs 12,500 crore, is turning out to be a worrying event for many early investors. According to the latest Red Herring Prospectus (RHP) filed on June 19, over 49,000 individual shareholders may suffer notional losses of up to 48 per cent. As of June 19, the company had 49,553 individual shareholders. These investors had bought HDB shares in earlier private transactions at prices ranging from Rs 1,200 to Rs 1,350 per share. But now, with the IPO priced at Rs 700 to Rs 740 per share, these shareholders are seeing the value of their investments drop sharply -- by 38 to 48 per cent, depending on the price at which they originally bought the shares. For instance, an investor who purchased 1 crore shares at Rs 1,250 each would have invested Rs 1,250 crore. At the current IPO price of Rs 740, the value of those shares would fall to Rs 740 crore, leading to a notional loss of Rs 510 crore. The IPO pricing is also lower than what was suggested by the grey market -- an unofficial market where shares are traded before they are listed on stock exchanges. HDB's public issue includes a fresh issue of Rs 2,500 crore and an offer-for-sale (OFS) worth Rs 10,000 crore by its parent company, HDFC Bank. As part of the OFS, HDFC Bank is selling 13.51 crore shares. Interestingly, HDFC Bank had acquired its stake in HDB at an average cost of just Rs 46.4 per share. So, even at Rs 740 per share, the bank is likely to make a massive profit of Rs 9,373 crore from this sale, before taxes. Meanwhile, at the upper end of the price band, the company is aiming for a post-money valuation of approximately $7.2 billion, or around Rs 62,000 crore.
New Indian Express
11 hours ago
- Business
- New Indian Express
Dayanidhi Maran's legal notice to Kalanithi Maran: Sun TV says it is a 'family matter' of the promoter
"We wish to inform that all acts have been done in accordance with legal obligations and the same have been duly vetted by concerned intermediaries before the public issue of the Company," the letter sent by the firm's Company Secretary and Compliance Officer, Ravi Ramamoorthy, said. Dayanidhi, in his legal notice sent to Kalanithi on June 10, 2025, had alleged that his brother and the others named in the notice, which included Ramamoorthy, had misled the public by providing falsified information in the Red Herring Prospectus issued when the company went public. He had threatened to file complaints with agencies like the SEBI and the Serious Frauds Investigation Office to investigate. The key allegation in the notice was that Kalanithi became a controlling shareholder of the company in 2003, when the brothers' father and former Union Minister Murasoli Maran was on his deathbed, by allotting 12 lakh shares to himself through means that were not 'legal'. The company, in its statement on June 20, emphasised that the allegations stem from events that occurred 22 years ago when the company was a closely held private limited company. "The matters alleged in the articles do not have any bearing on the business of the Company or its day-to-day functioning, and it is being a family matter of the Promoter (Kalanithi) -- is purely personal in nature," the statement said.
News18
12 hours ago
- Business
- News18
HDB Financial Services IPO To Open Next Week: Check Opening Date, Price, GMP, Lot Size, Other Details
Last Updated: HDB Financial Services Ltd is going to open its much-anticipated IPO between June 25 and June 27 to raise Rs 12,500 crore. HDB Financial Services IPO: HDB Financial Services Ltd, the non-banking financial arm of HDFC Bank, is going to open its much-anticipated IPO between June 25 and June 27 to raise Rs 12,500 crore, according to an exchange filing by HDB Financial on Thursday, June 19. Its anchor book will open on June 24. The public issue will become the biggest IPO of 2025 so far, surpassing the Rs 8,750-crore issue by Hexaware Technologies earlier this year. The move signals a strong revival in the Indian primary markets. HDB Financial IPO Opening Date According the filing, the company's IPO will remain open for public subscription next week — between June 25 and June 27. Anchor investors will be able to participate on June 24. HDB Financial IPO Issue Size The IPO aims to raise Rs 12,500 crore, making it one of the largest public issues by a non-banking financial company (NBFC) in recent years. The HDB Financial Services IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which holds 94.3 per cent stake. The firm had filed it's draft red herring prospectus (DRHP) for the IPO in October 2024. HDB Financial IPO Price and Lot Size While the price band and lot size are yet to be officially announced, those details are expected to be included in the Red Herring Prospectus (RHP), which will be filed soon. Its GMP will also be known after the IPO price is revealed. The IPO is primarily in response to the Reserve Bank of India's 2022 regulation mandating all large NBFCs categorised as 'upper layer" to be listed on the stock exchange by September 2025. Founded in 2007, HDB Financial Services provides a broad range of retail loans under three business verticals — enterprise lending, asset finance, and consumer finance. It focuses on both secured and unsecured loans, including personal loans and loans against property, particularly catering to underbanked segments. As of September 30, 2024, the company had a gross loan book of Rs 98,620 crore, with a CAGR of 20.93% from March 2022. Its FY24 profit stood at Rs 2,460 crore, with a CAGR of 55.9% over FY22-FY24. In its DRHP, the company noted that its loan book is highly diversified, with the top 20 customers contributing less than 0.36% of total gross loans. The average loan ticket size was around Rs 1.45 lakh as of September 30, 2024. The company had initially filed its DRHP on October 30, 2023, and received SEBI's approval at the end of May 2025.
&w=3840&q=100)
Business Standard
12 hours ago
- Business
- Business Standard
HDFC Bank may pocket ₹9,373-cr profit from HDB Financial Services IPO
HDB Financial Services IPO: India's largest private sector lender, HDFC Bank, is set to gain a whopping ₹9,373 crore profit from the Initial Public Offering (IPO) of its non-banking financial company (NBFC) arm, HDB Financial Services, scheduled to open on June 25, 2025. Notably, the HDB Financial Services IPO is slated to be the largest public offering in India's NBFC sector. That said, the Red Herring Prospectus (RHP) filed by the company reveals that the offering comprises a fresh equity issuance worth ₹2,500 crore, alongside an offer for sale (OFS) in which HDFC Bank will divest part of its stake (135.13 million equity shares) valued at ₹10,000 crore. The price band for the HDB Financial Services IPO has been set between ₹700 and ₹740 per share. If the public issue is fully subscribed at the upper end of the range, HDFC Bank stands to raise ₹10,000 crore from the OFS. Meanwhile, HDFC Bank's average acquisition cost for the shares is ₹46.4 per share, bringing the total acquisition cost for the OFS shares to approximately ₹627 crore, according to the RHP. Thus, the transaction is expected to generate a profit of approximately ₹9,373 crore for HDFC Bank, including payable taxes, if applicable. Currently, HDFC Bank holds a 94.3 per cent stake in HDB Financial Services, which is anticipated to reduce to around 70 per cent post-IPO. Despite the reduction in ownership, HDB Financial Services will remain a subsidiary of HDFC Bank. HDB Financial Services IPO details The public offering of HDB Financial Services will remain available for subscription from Wednesday, June 25 - Friday, June 27. HDB Financial Services has set the price band ₹700-740 per share, with a lot size of 20 shares. A retail investor would require ₹14,800 to bid for one lot or 20 shares of HDB Financial Services IPO. Meanwhile, for a maximum bid of under ₹200,000, retail investors can bid for 260 shares, or 13 lots, in this IPO. HDB Financial Services IPO grey market premium (GMP) today The unlisted shares of HDB Financial Services are commanding a solid premium in the grey markets on Friday. According to sources tracking unofficial market activities, the unlisted shares of HDB Financial Services were trading at ₹840 per share, reflecting a grey market premium of ₹100 or 13.51 percent over the upper end of the issue price. HDB Financial Services IPO allotment date, listing date Following the closure of the subscription window, the basis of allotment of HDB Financial Services IPO shares is expected to be finalized on Monday, June 30. The successful allottees will receive the company's shares in their demat accounts on Tuesday, July 1. Shares of HDB Financial Services are slated to make their D-Street debut by listing at BSE and NSE tentatively on Wednesday, July 2. About HDB Financial Services HDB Financial Services, a subsidiary of HDFC Bank, is one of the leading, diversified retail-focused NBFCs in India in terms of Total Gross Loan Book size, according to the CRISIL Report. Classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI), the company operates through three key business verticals—Enterprise Lending, Asset Finance, and Consumer Finance. HDB Financial Services also provides business process outsourcing services, including back-office support, collections, and sales support services to its promoter.
&w=3840&q=100)
Business Standard
15 hours ago
- Business
- Business Standard
Sun TV shares slide 5% on reports of Maran vs Maran feud; details here
Shares of Sun TV Network fell over 5 per cent on Friday after reports of a family dispute, with Chairman Kalanithi Maran receiving a legal notice from his brother and MP Dayanidhi Maran, alleging 'fraudulent practices'. The media conglomerate's stock fell as much as 5.25 per cent during the day to ₹580 per share, the steepest intraday fall since April 7 this year. The stock pared some losses to trade 3.8 per cent lower at ₹588.9 apiece, compared to a 0.17 per cent advance in Nifty 50 as of 9:40 AM. Shares of the company fell for the third straight day and have declined 8 per cent from its recent high of ₹643 apiece, which it hit last month. The counter has fallen 13.7 per cent this year, compared to a 5.08 per cent advance in the benchmark Nifty 50. Sun TV has a total market capitalisation of ₹23,331.78 crore, according to BSE data. The former Union Minister and DMK Member of Parliament Dayanidhi Maran has sent a legal notice to his brother Kalanithi Maran, accusing him of engaging in 'fraudulent practices', according to reports. The MP alleges his brother of cheating and money laundering, during his tenure as chairman of the media conglomerate Sun TV Network. The legal notice, served to Kalanithi Maran and seven other respondents, including his wife, Kaveri Maran, calls for the restoration of Sun TV's shareholding to its 2003 levels. The notice claimed that while Kalanithi held no shares in Sun TV in 2003, he now owns 75 per cent of the company. It further alleges that this transition occurred due to a share transfer to their mother, Mallika Maran, without legal documentation such as a death certificate or legal heir certificate following the death of Murasoli Maran. The notice alleged that Kalanithi allotted 12 lakh equity shares to himself at ₹10 each on 15 September 2003, an 'illegal act of criminal breach of trust and cheating.' Dayanidhi Maran will seek a government investigation by the Serious Fraud Investigation Office (SFIO), as these actions are serious crimes under company and criminal laws, according to reports. Kalanithi also alleged that Sun TV misled its stakeholders in its Red Herring Prospectus filed in 2006. Sun TV Q4 results The media firm posted a 10.4 per cent year-on-year drop in consolidated profit after tax (PAT) for the March quarter. The PAT stood at ₹371.77 crore, compared to ₹414.94 crore in the same quarter last year. The company's revenue from operations during the fourth quarter fell by 2.15 per cent to ₹940.59 crore, from ₹961.28 crore a year earlier. For the financial year ending March 31, 2025, Sun TV recorded an 11.53 per cent drop in net profit, which stood at ₹1,703.64 crore. This was lower than the ₹1,925.80 crore reported the previous year. About Sun TV The company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages. The company's flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV, Udaya TV, Sun Bangla and Sun Marathi. Presently, it is into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli.
