HDB Financial sets Rs 700-740 price band for Rs 12,500-crore IPO

HDB Financial Services, a retail-focused NBFC owned by HDFC Bank, has set a price band of Rs 700-740 for its Rs 12,500-crore IPO, marking a steep premium over face value but a sharp discount to grey market rates.

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At the upper end of the price band, the company will be valued at USD 7.5 billion, compared to the grey market valuation of USD 10.5 billion. The mega issue, the largest from the NBFC space, comprises a Rs 2,500 crore fresh issue of shares of Rs 10 face value and Rs 10,000 crore in offer-for-sale by parent HDFC Bank, which currently holds 94.3% of the company. The remaining 5.7% shares are held by the employees trust and employees through ESOPs, Chief Financial Officer Jaykumar Shah told at the press meet announcing the issue.