New Delhi, June 23 -- Retail investors hoping to make windfall gains in unlisted shares after they list at a premium on the bourses have got a harsh reality check following the losses suffered by investors in HDB Financial Services' shares.

The unlisted subsidiary of HDFC Bank on Friday announced a price band of Rs.700-740 a share for its initial public offering (IPO) this week, wiping out more than 30% of the premium from its shares that were happily picked up at Rs.1,100-1,200 till Thursday, according to brokers who declined to be identified as the prices are private information and of competitive nature.

According to the brokers, some investors had bid the unlisted shares up to as high as Rs.1,400 per share a few days ago based on pa...