Home / Business and Economy / HDB Financial Shares Tumble Below IPO Price After Strong Debut
HDB Financial Shares Tumble Below IPO Price After Strong Debut
4 Aug
Summary
- HDB Financial shares dip below IPO price of ₹740
- Stock hits 52-week low despite strong listing in July 2022
- Robust QIB demand backed the heavily oversubscribed ₹12,500 crore IPO
In a surprising turn of events, shares of HDB Financial Services have slipped below their issue price of ₹740, marking a reversal from the company's strong listing debut last month. On Monday, the stock tumbled 1.4% to touch a new 52-week low of ₹738.20 on the BSE.
The decline brings the stock below its IPO issue price, after having opened at ₹835 during its market debut on July 2, 2022. The shares had listed at a premium of 12.84% over the issue price, reflecting strong investor interest at the time.
Despite the volatile market backdrop, HDB Financial's ₹12,500 crore initial public offering (IPO) was heavily oversubscribed, being subscribed 17.65 times overall. Qualified Institutional Buyers (QIBs) led the demand, subscribing their portion 31.73 times. Investor enthusiasm was driven by the company's strong parentage and diversified loan book across retail, SME, and asset finance segments.
HDB Financial also boasts a wide phygital footprint with over 1,700 branches across India, more than 80% of which are located outside the top 20 cities. The IPO attracted bids worth over ₹1.61 lakh crore, making it the second-most subscribed large issue (over ₹10,000 crore) after Tata Technologies.
