HDB Financial IPO attracts bids worth Rs 1.61 lk cr; check odds of allotment & latest GMP

HDB Financial Services IPO, which saw a solid response from investors during the bidding process, has now left investors wondering what are the odds of getting the allotment of shares after a stellar bidding for the issue. Interestingly, retail bidders stand the best chance of allotment for this issue, along with shareholders of HDFC Bank Ltd, applying for the issue.

The IPO of HDB Financial Services fetched nearly 46.7 lakh applications. Net of the Rs 3,369 crore anchor book, the IPO of HDB Financial Services fetched bids worth Rs 1,61,080.71 crore for its Rs 9,131 crore offering as the issue was overall booked a strong 16.69 times.

The quota for qualified institutional bidders (QIBs) was booked 55.47 times, fetching bids worth Rs 1,31,696.50 crore. The allocation for non-institutional investors (NIIs) was booked 9.99 times, attracting bids for Rs 17,781.22 crore for their allocation. Retail portion was booked 1.41 times, while the employees portion was booked 5.72 times. Shareholders’ category attracted bids for Rs 5,624.32 crore.

Here is the tentative odds allotment matrix in HDB Financial Services IPO for the investors:

Big HNI category: 5 investor out of 11 investors will get 280 shares (Probability: 45 per cent)

Small HNI category: 5 investor out of 31 investors will get 280 shares (Probability: 16 per cent)

Retail category: Every retail bidder is likely to get at least one lot of 20 shares for a valid application (Probability: confirmed allotment)

Shareholder category: Investors applying for a minimum of 5-8 lots are likely to get one lot, applications for 9-12 lots are likely to get two lots, applications for full 13 lots may get 3 lots in the IPO. However, the applications for 1-4 lot will get allotment on a drawal of lot basis. (Probability: 22-89 per cent)

One should note that only valid applications with an IPO mandate shall be considered for the allotment. The applications may get rejected if there are some lags. Saptarshi Pandey, Founder at Investeem India said that duplicate applications with the same PAN number, mismatch of KYC, PAN or demat, ASBA errors, inactive/frozen demat accounts and technical submission errors may lead to rejection.

Commenting on the same, Trivesh D, COO at Tradejini said that investors often rush to apply for big ticket IPOs, driven by FOMO. In the rush, application forms are often filled incorrectly due to mismatched PAN or demographic details, duplicate applications from the same PAN, insufficient funds at the time of blocking, or incomplete KYC compliance. These rejections are procedural.

The IPO of HDB Financial Services was open for bidding between June 25 and June 27. The Ahmedabad-based NBFC had offered its shares in the fixed price band of Rs 700-740 per share with a lot size of 20 shares. The company raised Rs 12,500 crore via its primary offering, which included a fresh share sale of Rs 2,500 and an offer-for-sale (OFS) of up to Rs 10,000 crore by HDFC Bank.

Grey market premium (GMP) of HDB Financial Services has remained firm following a strong response from investors, signaling a decent listing at the bourses. Last heard, the company was commanding a premium of Rs 55-60 in the unofficial market, indicating a listing pop of 7-8 per cent for the investors.

JM Financial, BNP Paribas, Goldman Sachs (India), Bofa Securities India, HSBC Securities & Capital Markets, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal Investment, Nomura Financial Advisory, Nuvama Wealth, UBS Securities India are the book running lead managers of the HDB Financial IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.