HDB US$1.5 billion India IPO sold out as wealthy investors pile in

The offering received bids for 242.8 million shares as of Friday (Jun 27) afternoon in Mumbai, versus the 130.4 million shares offered

Published Fri, Jun 27, 2025 · 03:19 PM

HDB Financial Services’ US$1.5 billion initial public offering, one of India’s biggest this year, sold out amid demand from wealthy investors seeking to buy a piece of the shadow-lending unit of the country’s top private bank.

The offering received bids for 242.8 million shares as of Friday (Jun 27) afternoon in Mumbai, versus the 130.4 million shares offered, according to data available on the BSE bourse’s website. Individual investors that bid for more than 1 million rupees of shares were the biggest group bidding for the stock.

The portion reserved for qualified institutions was also fully subscribed, while the quota for retail investors was slightly short.

The share sale comes amid a rebound in the benchmark NSE Nifty 50 Index, and may serve as a barometer of demand for large Indian issuances ahead. The index has come off its correction and is trading less than 5 per cent shy of its peak in September.

There are some potentially bigger deals that are expected to take place this year, including those of Tata Capital and LG Electronics Inc’s Indian unit.

India emerged among world’s busiest markets for capital raising in 2024. After a recent lull, block trades, institutional share placements and IPOs are picking up.

HDB Financial raised 33.7 billion rupees (S$501.8 million) by allocating shares to anchor investors including Life Insurance Corp of India, the country’s biggest insurer, and domestic mutual funds. Funds managed by Morgan Stanley and Allianz were among the global investors. BLOOMBERG

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