Indian lender HDB Financial Services has set a price band of 700-740 rupees per share ($8.06-$8.52) for its initial public offering, testing investor appetite for the country’s biggest IPO so far this year in an uncertain market.
The $1.5 billion issue will value the non-banking financial company, a unit of India’s largest private lender, HDFC Bank, at around $7.1 billion, at the top end of the range, according to Reuters calculations.
The three-day share sale, which starts on June 25, will see HDFC Bank, which holds a 94% stake in HDB, sell shares worth up to 100 billion rupees ($1.15 billion). HDB will also issue new shares worth 25 billion rupees. Anchor investors will get to bid on June 24.
HDB received market regulator approval for the IPO earlier this month, setting the stage for the HDFC Group’s first public float in seven years, after HDFC Asset Management HDFA.NSin 2018.
India’s IPO market is picking up steam after a slow start this year caused by market gyrations resulting from global trade worries and a domestic border conflict.
The blue-chip Nifty 50 equities index has recovered roughly 14% from a one-year low in April, but is still down nearly 6% from record highs last September. Tensions in the Middle East this month have kept a lid on the recovery.
“We anticipate that the IPO subscription may face some challenges due to the increased volatility and the offering’s size,” said Aditya Kondawar, partner and vice president at Complete Circle Capital.
“However, we expect it to achieve full subscription, given the strong parentage and HDFC Bank shareholder quota,” he said.
The value of shares sold in India through IPOs was down 5% on a year-over year basis in 2025, LSEG data up to May showed, while the number of issues had dropped 31%.
HDB‘s IPO also follows new norms introduced by India’s central bank in 2022, mandating that large non-banking financial companies be listed on stock exchanges by September 2025.
Reuters
