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Owners of unlisted shares get jolt from HDB Fin's IPO band
Mint Mumbai
|June 23, 2025
Retail investors hoping to make windfall gains in unlisted shares after they list at a premium on the bourses have got a harsh reality check following the losses suffered by investors in HDB Financial Services' shares.
The unlisted subsidiary of HDFC Bank on Friday announced a price band of ₹700-740 a share for its initial public offering (IPO) this week, wiping out more than 30% of the premium from its shares that were happily picked up at ₹1,100-1,200 till Thursday, according to brokers who declined to be identified as the prices are private information and of competitive nature.
The IPO of HDB Financial opens for subscription on Wednesday.
According to the brokers, some investors had bid the unlisted shares up to as high as ₹1,400 per share a few days ago based on parent pedigree and likely supply crunch, ascribing a price-to-book ratio of 6-7 times, which is higher than rival Bajaj Finance's 5.7 times as of end FY24. The P/B ratio offers insights on the over- or undervaluation of a financial stock just as price-to-earnings (P/E) multiple does for non-financial stocks.
This story is from the June 23, 2025 edition of Mint Mumbai.
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