HDB Financial Services' $1.5 billion initial public offering was fully subscribed on the second day of bidding on Thursday, as investors lined up for India's biggest offering so far this year amid signs of a recovery in the capital market.
The non-banking financial company, a unit of India's top private lender HDFC Bank, is the HDFC Group's first public float in seven years and received bids worth up to 101.63 billion rupees ($1.19 billion) at the upper end of the 700-740 rupees price band, or 1.06 times the shares on offer, exchange data showed.
The shares are likely to start trading on July 2 in Mumbai.
The IPO, the biggest ever by an Indian non-bank lender, raised 33.69 billion rupees from so-called anchor investors, which included BlackRock funds, Life Insurance Corporation of India (LIC) and Norway's sovereign wealth fund.
HDFC Bank, which holds 94% stake in HDB, is selling shares worth up to 100 billion rupees in the three-day share sale from Wednesday to Friday. HDB is also issuing new shares worth 25 billion rupees in the IPO.
