Biggest NBFC Backed By HDFC Bank Issue Of The Year Opens June 25, Should You Invest?

HDFC Bank promoted HDB Financial Services is set to launch its initial public offering on Wednesday, June 25. The issue, which can be subscribed until Friday, Jun 27, shall be sold in the range of Rs 700-740 apiece with a lot size of 20 equity shares and in its multiples thereafter. Each lot of the IPO shall cost Rs 14,800 to the investors at the upper end of the price band. According to the RHP of HDB Financial Services, the IPO includes a reservation of 10 per cent or Rs 1,250 crore for the eligible shareholders of the HDFC Bank Ltd. Shareholders of HDFC Bank, who held shares as of June 19 in their demat account, shall be eligible to apply under this category as well. It is the date when HDB Financial Services filed RHP with markets regulator Sebi. The IPO aims to raise Rs 12,500 crore, including a fresh issue of Rs 2,500 crore and an offer-for-sale (OFS) of 13,51,35,135 shares worth Rs 10,000 crore by its parent HDFC Bank. Shares worth Rs 20 crore are reserved for employees. Proceeds will bolster HDB Financial Services' tier-I capital base for future needs, including onward lending. All you need to know about this IPO.