Investment bankers pocket just ₹104 crore from HDB Financial IPO

Investment bankers handling the initial public offering (IPO) of  HDB Financial pocketed fees of ₹104.3 crore, just 0.83 per cent of the amount raised from the share sale.

 

The expenses incurred were lower than that seen for an IPO of a private sector company.

 

For instance, last year Hyundai Motor India had paid ₹493 crore — 1.77 per cent of the issue size — as fees and commissions to investment bankers. This was the biggest-ever pay cheque for handling an IPO, surpassing the previous record of ₹324 crore (also 1.77 per cent of the total issue size) paid by digital payment major One 97 Communications (Paytm) following its ₹18,300 crore IPO in November 2021.

 

The arm of HDFC Bank incurred a total cost of ₹227 crore, 1.81 per cent of the offer size, on the IPO. 

 

 

The NBFC major’s ₹12,500 crore IPO was the fifth largest in the domestic market. The IPO, which concluded last week, garnered 17x subscription and generated bids worth ₹1.6 trillion. About a dozen investment bankers led by JM Financial, BNP Paribas, BofA Securities, and Goldman Sachs handled the share sale.  

 

Shares of HDB are expected to list on Wednesday. According to the grey market activity, shares of the company could list at a 10 per cent premium to its IPO price of ₹740 per share.

 

The first half of calendar 2025, saw 24 IPOs on the mainboard. The cumulative amount raised by these companies stood at ₹45,375 crore, translating into an average IPO size of ₹1,890 crore.

 

After HDB, the second-biggest deal was Hexaware Technologies, which raised ₹8,750 crore from its IPO in February.

 

The IT firm had paid ₹215 crore, 2.5 per cent of the offer size, to its investment bankers.