Latest news with #HDB
Time of India
a day ago
- Business
- Time of India
HDB Financial's IPO gets $19 billion in bids as institutional buyers pile in
HDB Financial Services' $1.5 billion IPO drew bids worth $19 billion by Friday's close as institutional buyers rushed for India's largest offering so far this year, signaling investor confidence in a stock market recovery. India's IPO market is gaining momentum after a slow start, as the stock market stabilizes following earlier volatility driven by global trade concerns. The blue-chip Nifty 50 index, which hit a one-year low in April, now sits just 2.4% below record highs from last year, as easing geopolitical tensions and trade fears spurred risk-on sentiment. HDB Financial, a unit of India's biggest private lender HDFC Bank , saw its issue subscribed 16.7 times over, driven by qualified institutional buyers such as foreign investors and mutual funds who bid for 55 times their reserved portion. Non-institutional investors bid for 10 times their portion, while retail investor interest was comparatively muted, with their shares being oversubscribed just 1.4 times, exchange data showed. Live Events The strong investor response makes HDB Financial's IPO the most subscribed offering over $1 billion since Zomato's in 2021, data from Prime Database showed. "The response to the issue has been very encouraging, and considering the issue size signals that investors are growing increasingly confident of the local market as global trade worries ebb out," said Narendra Solanki, head of research at Anand Rathi Shares and Stock Brokers. "The bid numbers show that the primary markets are coming back to life after a lull earlier this year, and such a response for a sizeable issue like HDB's should give IPO hopefuls in the pipeline confidence to also come forth to test waters," Solanki added. HDB Financial' s IPO, the biggest ever by an Indian non-bank lender, was one of six offerings this week, five of which were oversubscribed in a range of 2-86 times. Earlier this week, Credila Financial Services and Pine Labs filed for IPOs. HDFC Bank, which holds a 94% stake in HDB, sold shares worth up to 100 billion rupees, while HDB issued new shares worth 25 billion rupees. The company is targeting a valuation of up to $7.1 billion at the upper end of the 700-740 rupees price band. The stock is expected to start trading on July 2. HDB had already raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) and Norway's sovereign wealth fund. ETMarkets WhatsApp channel )
Economic Times
a day ago
- Business
- Economic Times
HDB Financial's IPO gets $19 billion in bids as institutional buyers pile in
HDB Financial Services' $1.5 billion IPO drew bids worth $19 billion by Friday's close as institutional buyers rushed for India's largest offering so far this year, signaling investor confidence in a stock market recovery. ADVERTISEMENT India's IPO market is gaining momentum after a slow start, as the stock market stabilizes following earlier volatility driven by global trade concerns. The blue-chip Nifty 50 index, which hit a one-year low in April, now sits just 2.4% below record highs from last year, as easing geopolitical tensions and trade fears spurred risk-on sentiment. HDB Financial, a unit of India's biggest private lender HDFC Bank, saw its issue subscribed 16.7 times over, driven by qualified institutional buyers such as foreign investors and mutual funds who bid for 55 times their reserved portion. Non-institutional investors bid for 10 times their portion, while retail investor interest was comparatively muted, with their shares being oversubscribed just 1.4 times, exchange data showed. The strong investor response makes HDB Financial's IPO the most subscribed offering over $1 billion since Zomato's in 2021, data from Prime Database showed. ADVERTISEMENT "The response to the issue has been very encouraging, and considering the issue size signals that investors are growing increasingly confident of the local market as global trade worries ebb out," said Narendra Solanki, head of research at Anand Rathi Shares and Stock Brokers. "The bid numbers show that the primary markets are coming back to life after a lull earlier this year, and such a response for a sizeable issue like HDB's should give IPO hopefuls in the pipeline confidence to also come forth to test waters," Solanki added. ADVERTISEMENT HDB Financial' s IPO, the biggest ever by an Indian non-bank lender, was one of six offerings this week, five of which were oversubscribed in a range of 2-86 times. Earlier this week, Credila Financial Services and Pine Labs filed for IPOs. HDFC Bank, which holds a 94% stake in HDB, sold shares worth up to 100 billion rupees, while HDB issued new shares worth 25 billion rupees. The company is targeting a valuation of up to $7.1 billion at the upper end of the 700-740 rupees price band. ADVERTISEMENT The stock is expected to start trading on July 2. HDB had already raised $392 million from anchor investors, including BlackRock funds, Life Insurance Corporation of India (LIC) and Norway's sovereign wealth fund. (You can now subscribe to our ETMarkets WhatsApp channel)
AsiaOne
a day ago
- General
- AsiaOne
Falling concrete in flats: Who is responsible for maintenance — town council, HDB, or homeowner?, Singapore News
Recently, there were two instances of concrete blocks falling from ceiling of HDB units. FM Love 972 radio DJ Ho Ai Ling narrowly avoided injury on June 22 when a chunk of concrete fell from the toilet ceiling in her flat at Block 81 Commonwealth Close in Queenstown. Ho moved into her 58-year-old flat 14 years ago. Earlier, an elderly man was struck by falling spalling concrete from the ceiling of his toilet in his Yishun HDB flat on the morning of June 19, sustaining injuries to both his leg and head, requiring more than 10 stitches. The flat was completed 41 years ago. While his family received assistance from Nee Soon GRC MP K Shanmugam with payment for repairs, where exactly does the buck stop when it comes to responsibility for spalling concrete in HDB homes? Is it the owner, HDB, or the town council? Owner's responsibility: HDB HDB has said that spalling concrete is a common issue for older buildings, exacerbated by damp conditions such as those in kitchens or toilets. It occurs when concrete breaks away from a surface due to numerous factors, such as moisture build-up or corrosion of metal reinforcement within the concrete. "As the owner, you are responsible for the prevention and repair of any spalling concrete in your flat," according to HDB, adding that spalling concrete within HDB flats can be prevented with regular maintenance. It has advised homeowners to repair spalling concrete themselves if the affected area is small, or engage a contractor for larger areas before more concrete dislodges and causes injury. [[nid:719319]] If left unattended, concrete spalling can spread to a bigger area and weaken the building structure, HDB stated. It also has multiple inspection regimes in place to detect issues such as spalling concrete, according to response by the Ministry of National Development (MND) to a Parliamentary question by Joan Pereira on Oct 20, 2022. Under the periodic structural inspection regime, inspections must be conducted for all residential buildings every 10 years to ensure that building structures are well maintained. For flats completed before Jan 1, 1989, HDB conducts additional inspections at five-year intervals. Periodic façade inspections are also conducted for buildings above 20 years old and more than 13m in height every seven years. The goodwill repair assistance (GRA) scheme also allows HDB to provide aid to flat owners to repair spalling concrete issues. Under the scheme, HDB co-pays 50 per cent of the cost of repairs, up to $300 per flat. For rental flats, HDB bears the full cost for the repair of spalling concrete. HDB's home improvement programme (HIP) for blocks built up to 1997 also repairs spalling concrete and structural cracks in flats. Town council responsible for common property While many residents may contact their town councils for assistance when they spot spalling or cracked concrete in their homes, the town councils' involvement in resolving the issue should be minimal. According to a response by MND to a parliamentary question by Christopher de Souza on Aug 7, 2024, town councils are responsible for maintaining the common property. View this post on Instagram A post shared by AsiaOne (@asiaonecom) This means that the maintaining the interior of flats and necessary repair works are not their responsibility. Instead, should flat owners encounter issues with their main soil pipe or exterior and façade walls, the town council can assist. "Minor wall cracks inside flats do not affect the structural integrity and safety of the building," MND stated. "Flat owners can patch up and repaint their walls. For exterior and facade walls, the town councils carries out inspections and upkeep of these walls." HDB also follows-up with regular inspections and will immediately repair if the crack could potentially compromise the structural integrity of the building, they added. Homeowners and their responsibility Speaking with AsiaOne, PKWA Law associate director Mark Cheng said that in most interior spalling cases, HDB's stance that the homeowner is responsible is legally sound. "Flat owners are responsible for maintaining their interiors, but in certain cases, they may be eligible to apply for co-payment from the HDB," Cheng said. Town councils handle common property such as external facades and roofs and would not be responsible for internal spalling, he stated. Cheng said that town councils may investigate and get involved if spalling debris originates from facades or falls onto void decks, corridors or exteriors. But homeowners aren't always liable for concrete spalling. In instances of spalling caused by leakage upstairs, HDB can mediate or enforce repairs, or even take legal action should the person in the unit above refuse access for necessary repairs, Cheng explained. "In addition, the homeowner might not have to pay for repairs if the spalling falls within upgrading schemes such as the HIP, or occurs during the defects liability period for new builds." "Knowing when liability shifts is key," he added. "With the assistance of a lawyer, homeowners can be better advised on their rights, in order to trigger the correct government funding for repairs, or seek redress if coverage is wrongly denied." [[nid:719492]] khooyihang@
AsiaOne
a day ago
- General
- AsiaOne
Woman called 'embarrassing' for using CDC vouchers on date, sparks online debate, Singapore News
A woman was recently accused of being "embarrassing" after she used her CDC vouchers to pay for a $100 meal during a date — prompting fresh debate over the intended use of the government-issued vouchers. In a now-viral TikTok post, the woman shared that she had offered to pay for dinner since she was the one who invited her date out. Upon realising the restaurant accepted CDC vouchers, she decided to use them. "Any normal person would be happy. I didn't even know restaurants can use CDC vouchers... so I used la ." But the mood quickly soured. As she was leaving the car, her date remarked: "Why did you use CDC vouchers to pay? It's kinda embarrassing, eh." The incident sparked a flurry of responses online, with many criticising the man's attitude. "More embarrassing that she wasted her CDC voucher on him," one commenter said. Others pointed out that the vouchers were still a form of money, and praised her for using them wisely. "CDC is still considered money bruh," one said. "You dodged a bullet with a CDC voucher," another user added. Some even shared their own stories. "We celebrated our 10th wedding anniversary eating my favourite chilli crabs, and were happy to pay with CDC vouchers," said one commenter. Still, not everyone agreed. One commenter argued that the vouchers were meant to support households, not individuals. "She just used it without her parents' permission," one commenter wrote. The CDC Vouchers Scheme was first launched in December 2021 to thank Singaporeans for their sense of solidarity during the Covid-19 pandemic and to support local businesses at HDB estates and hawkers. The discussion was already heating up in May after another woman posted a TikTok showing how she offset $290 from the cost of a 1TB iPhone 15 Pro Max using CDC vouchers at Mister Mobile. In her video, she said she was surprised the vouchers could be used that way. Joy, 32, told MS News that although she is not a Singaporean, she received the vouchers through her husband and combined them from previous and current batches. "I thought I got a really good deal," she said. Her video drew mixed reactions. Some commenters said the vouchers were intended to offset inflation-related expenses, not luxury goods. Others pointed to a deeper issue — whether the current distribution of vouchers, which allocates the same amount to all households, remains fair. "Why do all households get the same amount? Our fellow citizens living in landed homes are getting the same amount as someone in a rental flat," a commenter pointed out. However, many defended the practice, pointing out that there are no restrictions on what can be bought — only that CDC vouchers must be used at participating hawker stalls, heartland shops, and supermarkets. "Why do people care what others use their CDC vouchers for?" one said. [[nid:719408]]
Time of India
a day ago
- Business
- Time of India
Last chance: HDB Financial's Rs 12,500 crore IPO closes today. Should you chase 8% listing gains?
Brokerages See Listing Pop Ahead Live Events Valuation Discount Despite Strong Parentage (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Time is running out for India's largest IPO of 2025. HDFC Bank-backed HDB Financial Services ' mega Rs 12,500 crore public offering closes today, with grey market premium (GMP) signaling potential listing gains of 8% when the stock debuts on Wednesday, July 2. The IPO has already been oversubscribed 1.6 times overall, but retail investors still have room to participate - the retail quota stood at just 76% subscription this morning on the final day of Financial, India's seventh-largest retail-focused NBFC with a gross loan book of Rs 1,06,880 crore, is seeking to raise capital through a combination of Rs 2,500 crore fresh issue and Rs 10,000 crore offer for sale (OFS). The listing is mandatory under RBI norms for upper-layer issued a bullish call, stating: "We expect healthy listing gains and remain assertive from a medium to long-term perspective. Strong parentage and much smaller in size as compared to its core peer (Bajaj Finance) provides a long runway for growth."The brokerage values the company at an "FY25 price-to-book ratio of ~3.2x/~3.4x at post-issue capital at the lower price band & upper price band respectively, which is reasonable as compared to its peers considering the growth and return ratio profile."SBI Securities projects listing gains of 5-10%, recommending investors "SUBSCRIBE to the issue at the cut-off price." The firm highlighted that HDB is "backed by strong parentage, brand, governance, risk management and a high credit rating" and is "one of the largest NBFCs catering to the 2nd largest customer franchise."Chola Securities issued a 'SUBSCRIBE' rating specifically for listing gains, noting that while there has been "slippage in asset quality, rise in incremental credit cost and compression in Net Interest Margins in FY'25 over FY'24," the "tail winds of interest rate cuts, falling inflation trajectory, normal monsoons is likely to address aforesaid concerns going forward."Nirmal Bang compared HDB with sector leader Bajaj Finance and peers like Chola, M&M Finance, Shriram Finance and L&T Finance. "HDB's asset quality is superior to peers on the back of its strong ownership and management pedigree," Nirmal Bang noted. However, the firm pointed out that "owing to HDB's prudent focus on quality of customers, it earns a lower spread vis-à-vis peers. Also HDB's operational cost is elevated."This has resulted in HDB delivering "ROA in the range of between 2 to 3% over last 3 years with FY25 post IPO ROA of 2.0%," significantly below the peer average of 3.2% and Bajaj Finance's 5.0%.Despite the performance gap, Nirmal Bang believes HDB is "attractively valued from a long term perspective" when compared to Chola, which has an ROA of 2.4% but trades at 5.5x FY25 versus HDB's 3.4x post-IPO Financial operates through three main verticals: Enterprise Lending (39.30%), Asset Finance (38.03%) and Consumer Finance (22.66%) of their total gross loan book. The company offers lending products through a wide omni-channel distribution network to serve its diverse customer fresh issue proceeds will be used to augment the company's Tier-I capital base for future growth and onward lending requirements, while the listing fulfills RBI's mandatory requirements for upper-layer NBFCs.
