Indian non-bank lender HDB Financial Services jumped 12.84% in its trading debut on Wednesday, reflecting strong investor interest in the country's biggest IPO so far this year amid rising hopes of a rebound in the domestic capital markets.
The stock opened at 835 rupees on the National Stock Exchange of India, compared with its offer price of 740 rupees, valuing the company at $8.09 billion.
HDB's $1.5 billion IPO, comprising a share sale of 100 billion rupees by its parent HDFC Bank and a fresh issue worth 25 billion rupees, garnered bids worth $19 billion last week. It was eyeing a valuation of $7.1 billion.
"HDB Financial, with its strong parentage, has recorded a very encouraging listing, and its performance will definitely lend more courage to IPO hopefuls to test waters of public markets," said Mahesh Ojha, assistant vice president, research and business development at Hensex Securities.
