India's HDB Financial jumps about 13% in trading debut, notches $8 billion valuation
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 (HDBK.NS), opens new tab 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.
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If you are planning to take out a new mortgage – either to buy a home or as a remortgage – you face a decision about whether to fix for the short or long term, choose a tracker or even to go on a bank's standard variable rate (SVR). Currently, the best-priced two- and five-year fixed deals have a rate of just below 4%. Nick Mendes of the brokers John Charcol says lenders are reducing rates at present largely because of falling swap rates, a key factor in how mortgages are priced. Swap rates reflect what the money markets expect to happen to interest rates in future. 'Fixed mortgage rates are more influenced by swap rates than the base rate itself, which means they are shaped by what markets think might happen in the future rather than what is happening today,' he says. Going on to a lender's SVR in the hope that fixed rates will improve later in the year is a risky strategy as the rates are high, at about 6.5%, and can change at any time and increase your monthly repayments. 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