HDB Financial IPO Day 1: Check subscription status, latest GMP, reviews, allotment date & more
HDB Financial Services is selling its shares in the price band of Rs 700-740, which could be applied for a minimum of 20 shares and its multiples to raise a total of Rs 12,500 crore between June 25-27.
- Jun 25, 2025,
- Updated Jun 25, 2025 2:55 PM IST
The initial public offering (IPO) of HDB Financial Services was off to a decent bidding from the investors during the first day of the bidding process from all the categories of the investors, barring the QIBs. The issue, which kicked off on Wednesday, June 25, shall close for bidding on Friday, May 27.
HDB Financial Services is selling its shares in the price band of Rs 700-740 apiece. Investors can apply for a minimum of 20 shares and its multiples thereafter. It is looking to raise Rs 12,500 crore via IPO, which includes a fresh share sale of Rs 2,500 and an offer-for-sale (OFS) of up to Rs 10,000 crore by HDFC Bank.
According to the data, the investors made bids for 3,43,35,720 equity shares, or 26 per cent, compared to the 13,04,42,855 equity shares offered for the subscription by 2.35 pm on Wednesday, June 25, 2025. The bidding for the issue shall continue for three-days.
The allocation for retail investors was subscribed 24 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 48 per cent. Allocations for shareholders and eligible employees were subscribed 49 per cent and 1.32 times, respectively. However, the quota set aside for qualified institutional bidders (QIBs) did not see any major bids at the same time.
Incorporated in 2007, Ahmedabad-headquartered HDB Financial Services is a retail-focused, non-banking financial company. Its lending products are offered through the three business verticals- enterprise lending, asset finance and consumer finance. It also offers business process outsourcing (BPO) services to its parent HDFC Bank.
The grey market premium (GMP) of HDB Financial Services has remained stable amid mixed market conditions. Last heard, the company was commanding a premium of Rs 65-75 per share in the unofficial market, suggesting a 8-10 per cent listing gains for the investors. The GMP stood around Rs 50 before the issue kicked-off.
Analysts mostly have a positive view on this issue. They are positive on the strong parentage of HDFC Group, diversified product portfolio, pan India network, strong growth in the customer base, growth potential, decent asset quality, reasonable valuations. However, Unsecured loan book, rising competition and high cost of operations are some of concerns for the issue.
HDB Financials' valuation represents a significant discount to Chola, which trades at 5.7 times PBV and 32 times PE on trailing basis, said YES Securities. "In the light of HDB’s sturdy franchise, strong management/promoter, positively changing operating environment and palatable IPO valuation, we recommend subscribing into the issue with a potential of meaningful upside," it said.
HDB Financial is available at a P/B ratio of 3.4 times, which appears to be fairly priced compared to its peers, said Geojit Investments. "Given its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, customer expansion, asset quality, and better growth prospects, we recommend a 'subscribe' rating on a long term," it said.
For the year ended on March 31, 2025, HDB Financial Services reported a net profit of Rs 2,175.92 crore with a revenue of Rs 16,300.28 crore. The company clocked a net profit of Rs 2,460.84 crore with a revenue of Rs 14,171.12 crore for the financial year 2023-24. The company shall command a market capitalization more than Rs 61,250 crore.
HDB Financial Services raised Rs 3,369 crore from 141 anchor investors as it allotted 4.5 crore shares at Rs 740 apiece. It has reserved shares for Rs 20 crore for its eligible employees, while shares for Rs 1,250 crore are reserved for the eligible shareholders of HDFC Bank. It has reserved 50 per cent of the net offer for QIBs, 15 per cent NIIs and 35 per cent for retailers.
HDB Financial Services operates through a robust nationwide distribution network of 1,771 branches and over 60,000 employees, with a strong focus on digital infrastructure and underbanked customer segments. Supported by the recent RBI rate cut, the borrowing environment is favorable, offering potential for margin expansion, said Mahesh Ojha, AVP- Research at Hensex Securities.
"Despite being significantly smaller than peers like Bajaj Finance, HDB benefits from its strong parentage and has demonstrated consistent growth. From FY23 to FY25, its AUM and PAT grew at a CAGR of 24 per cent and 5.4 per cent, respectively, while maintaining average Gross NPAs around 2.3 per cent, indicating strong asset quality amid expansion,"
BNP Paribas, JM Financial, Bofa Securities India, Goldman Sachs (India), HSBC Securities & Capital Markets, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal Investment, Nomura Financial Advisory, Nuvama Wealth, UBS Securities India are the book running lead managers of the HDB Financial IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.
The initial public offering (IPO) of HDB Financial Services was off to a decent bidding from the investors during the first day of the bidding process from all the categories of the investors, barring the QIBs. The issue, which kicked off on Wednesday, June 25, shall close for bidding on Friday, May 27.
HDB Financial Services is selling its shares in the price band of Rs 700-740 apiece. Investors can apply for a minimum of 20 shares and its multiples thereafter. It is looking to raise Rs 12,500 crore via IPO, which includes a fresh share sale of Rs 2,500 and an offer-for-sale (OFS) of up to Rs 10,000 crore by HDFC Bank.
According to the data, the investors made bids for 3,43,35,720 equity shares, or 26 per cent, compared to the 13,04,42,855 equity shares offered for the subscription by 2.35 pm on Wednesday, June 25, 2025. The bidding for the issue shall continue for three-days.
The allocation for retail investors was subscribed 24 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 48 per cent. Allocations for shareholders and eligible employees were subscribed 49 per cent and 1.32 times, respectively. However, the quota set aside for qualified institutional bidders (QIBs) did not see any major bids at the same time.
Incorporated in 2007, Ahmedabad-headquartered HDB Financial Services is a retail-focused, non-banking financial company. Its lending products are offered through the three business verticals- enterprise lending, asset finance and consumer finance. It also offers business process outsourcing (BPO) services to its parent HDFC Bank.
The grey market premium (GMP) of HDB Financial Services has remained stable amid mixed market conditions. Last heard, the company was commanding a premium of Rs 65-75 per share in the unofficial market, suggesting a 8-10 per cent listing gains for the investors. The GMP stood around Rs 50 before the issue kicked-off.
Analysts mostly have a positive view on this issue. They are positive on the strong parentage of HDFC Group, diversified product portfolio, pan India network, strong growth in the customer base, growth potential, decent asset quality, reasonable valuations. However, Unsecured loan book, rising competition and high cost of operations are some of concerns for the issue.
HDB Financials' valuation represents a significant discount to Chola, which trades at 5.7 times PBV and 32 times PE on trailing basis, said YES Securities. "In the light of HDB’s sturdy franchise, strong management/promoter, positively changing operating environment and palatable IPO valuation, we recommend subscribing into the issue with a potential of meaningful upside," it said.
HDB Financial is available at a P/B ratio of 3.4 times, which appears to be fairly priced compared to its peers, said Geojit Investments. "Given its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, customer expansion, asset quality, and better growth prospects, we recommend a 'subscribe' rating on a long term," it said.
For the year ended on March 31, 2025, HDB Financial Services reported a net profit of Rs 2,175.92 crore with a revenue of Rs 16,300.28 crore. The company clocked a net profit of Rs 2,460.84 crore with a revenue of Rs 14,171.12 crore for the financial year 2023-24. The company shall command a market capitalization more than Rs 61,250 crore.
HDB Financial Services raised Rs 3,369 crore from 141 anchor investors as it allotted 4.5 crore shares at Rs 740 apiece. It has reserved shares for Rs 20 crore for its eligible employees, while shares for Rs 1,250 crore are reserved for the eligible shareholders of HDFC Bank. It has reserved 50 per cent of the net offer for QIBs, 15 per cent NIIs and 35 per cent for retailers.
HDB Financial Services operates through a robust nationwide distribution network of 1,771 branches and over 60,000 employees, with a strong focus on digital infrastructure and underbanked customer segments. Supported by the recent RBI rate cut, the borrowing environment is favorable, offering potential for margin expansion, said Mahesh Ojha, AVP- Research at Hensex Securities.
"Despite being significantly smaller than peers like Bajaj Finance, HDB benefits from its strong parentage and has demonstrated consistent growth. From FY23 to FY25, its AUM and PAT grew at a CAGR of 24 per cent and 5.4 per cent, respectively, while maintaining average Gross NPAs around 2.3 per cent, indicating strong asset quality amid expansion,"
BNP Paribas, JM Financial, Bofa Securities India, Goldman Sachs (India), HSBC Securities & Capital Markets, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal Investment, Nomura Financial Advisory, Nuvama Wealth, UBS Securities India are the book running lead managers of the HDB Financial IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.