A Short Analysis of HDFC Bank Share

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The stock was started trading at Rs 633 and was trading at Rs 640, slightly up from its issue price of Rs 609, at close on Friday. However, the stock had a good run-up in the first session.
The Rs 334-billion IPO, the country’s biggest in six years, was oversubscribed 96 times. The qualified institutional buyers (QIBs) portion of the IPO was subscribed 45 times, while high net-worth individuals (HNI) portion was subscribed 70 times. Retail investors portion was subscribed 1.3 times.
The price band of the IPO was fixed at Rs 609 to Rs 616. The price band was fixed to provide exit to “early” investors who had invested during the allotment process of the institutional tranche.
The company has paid a dividend of Rs 7 a share for FY16.
HDFC had raised Rs 5,300 crore through an IPO in December 2010, with Rs 1,500 crore coming from primary share sale, and the rest from the issue of bonus shares.

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