HDB Financial Services Ltd’s US$1.5 billion (approximately RM6.34 billion) initial public offering has emerged as the most actively subscribed major Indian listing in at least four years, driven by robust demand from both foreign and domestic institutional investors.
The non-banking financial arm of HDFC Bank Ltd, India’s leading private sector lender, attracted bids exceeding two billion shares by Friday afternoon in Mumbai, significantly surpassing the 130.4 million shares on offer, according to data published by the Bombay Stock Exchange.
Participation was led by global institutional investors, domestic mutual funds and financial institutions. High net-worth individuals—those placing bids exceeding one million rupees (RM49,000)—also demonstrated significant interest. Meanwhile, the retail portion earmarked for small investors was fully subscribed.
With demand for the issue exceeding available shares by over 15 times, HDB Financial’s listing represents the most substantial oversubscription since food delivery platform Eternal Ltd’s US$1.4 billion IPO, which drew more than 29 times coverage, exchange records show.
This offering comes at a time of renewed confidence in Indian equity markets, as the NSE Nifty 50 Index edges to within 5% of its record high from September. The strong reception signals resurging appetite for large-scale public issues and could set the tone for several high-profile deals anticipated later this year, including prospective listings from Tata Capital Ltd and LG Electronics Inc’s India unit.
India has re-emerged as one of the most dynamic global markets for equity fundraising in 2024. Following a period of subdued activity, IPOs, block trades and institutional placements have gained renewed momentum.
HDB Financial secured 33.7 billion rupees through its anchor book allocation, with key institutional participants including Life Insurance Corporation of India—the country’s largest insurer—and a range of domestic mutual funds. Notably, global asset managers such as Morgan Stanley and Allianz SE were also among the cornerstone investors.
-Bloomberg
