By News18
New Delhi, Jul 3 (PTI) Shares of newly-listed HDB Financial Services Ltd, a subsidiary of HDFC Bank, ended nearly 3 per cent higher on Thursday.
Rallying for the second day in a row, the stock climbed 2.88 per cent to settle at Rs 865.10 apiece on the BSE. During the day, it jumped 6 per cent to Rs 891.65.
On the NSE, shares of the firm went up by 2.74 per cent to end at Rs 864 each.
Shares of HDB Financial Services Ltd on Wednesday ended with a premium of nearly 14 per cent against the issue price of Rs 740.
The company’s market valuation stood at Rs 71,765.82 crore.
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.
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. PTI SUM SUM SHW