HDB Financial Services IPO a subsidiary of India’s top private sector bank HDFC Bank is currently in the spotlight due to its massive ₹12,500 crore Initial Public Offering IPO. As the IPO heads into Day 3 interest from investors is steadily rising particularly from non institutional and employee segments while the retail and QIB participation is gradually picking up
What is the Structure of the HDB IPO
The HDB Financial Services IPO is a book built issue consisting of a fresh issue of ₹2,500 crore and an offer for sale OFS of ₹10,000 crore. The IPO opened for public subscription on June 25 2025 and will close on June 27 2025. The price band is set at ₹730 to ₹740 per equity share with a face value of ₹10 each
Latest Subscription Status of HDB IPO as of Day 2
The total IPO subscription reached 60 percent by the second day of bidding. Here’s the category wise breakdown as per the BSE IPO data Qualified Institutional Buyers QIBs showed a subscription of just 0.04 times Non Institutional Investors NIIs emerged as the strongest group subscribing 1.32 times their quota Retail Individual Investors RIIs subscribed 0.46 times Employee quota was subscribed 2.29 times reflecting strong internal faith The shareholder reserved category received a subscription of 1.08 times Overall the IPO has received bids for 7.86 crore shares against 13.04 crore shares available.
Grey Market Premium GMP Insights
The latest GMP for the HDB Financial IPO is ₹50.5 as of June 25 2025. With the upper price band at ₹740 this suggests an estimated listing price around ₹790.5 giving investors a potential listing gain of 6.8 percent. The healthy premium reflects growing confidence in HDB’s financial strength and its strong parentage under HDFC Bank.
Company Profile of HDB Financial Services
Established as a wholly owned subsidiary of HDFC Bank HDB Financial Services is among the top seven non banking financial companies NBFCs in India based on gross loan book which stood at ₹90,220 crore as of March 2024. The company is classified by RBI as an upper layer NBFC NBFC UL. HDB offers services through three major business segments
Enterprise Lending contributing 39.3 percent to the gross loan book
Asset Finance accounting for 38 percent
Consumer Finance making up 22.7 percent
HDB operates more than 1,771 branches across over 1,170 towns in 31 states and union territories offering extensive customer reach and diversified risk exposure.
Financial Performance Snapshot
In FY23 HDB reported a net profit of ₹1,959 crore with a revenue of ₹12,402 crore. As per FY25 estimates the company recorded revenue of ₹16,300 crore up 15 percent YoY. However net profit saw a decline of 11.57 percent to ₹2,175 crore from ₹2,460 crore in FY24. Interest income rose by 24 percent while expenses increased by 23 percent indicating operational efficiency remains intact.
Expert Ratings and Market Sentiment
Top brokerage houses have shared their views on the IPO LKP Securities and Deven Choksey have recommended subscribing to the IPO highlighting HDB’s strong credit rating AAA Stable from CRISIL and CARE and its well diversified business Bajaj Broking has advised subscribing from a medium to long term perspective citing future operational improvements and solid listing potential SBI Securities recommended the IPO as a good bet for diversified portfolios owing to HDB’s strong distribution network and balanced revenue contribution across verticals.
Anchor Investment and Institutional Confidence
HDB Financial raised ₹3,369 crore from 141 anchor investors including domestic mutual funds insurance companies and foreign institutions. The allocation was done at ₹740 per share confirming demand at the upper end of the price band
IPO Timeline at a Glance
IPO Open Date June 25 2025
IPO Close Date June 27 2025
Basis of Allotment June 30 2025
Credit to Demat June 30 2025
IPO Listing Date July 2 2025
Book Running Lead Managers
JM Financial
BNP Paribas
Morgan Stanley
BofA Securities
Goldman Sachs
HSBC
IIFL Capital
Jefferies
Nomura
Motilal Oswal
Nuvama Wealth
UBS Securities
Registrar to the Issue
MUFG Intime India Private Limited Link Intime is managing the IPO allotment and refund process
Final Thoughts Should You Invest in HDB Financial Services IPO
Backed by the credibility of HDFC Bank a vast branch network robust product diversity and strong financial performance HDB Financial Services presents itself as a fundamentally sound long term investment. While the short term listing gains based on GMP are modest around 7 percent the company’s long term growth prospects particularly in consumer and asset financing remain compelling. Investors looking for stable growth via quality NBFC exposure may find HDB IPO a valuable addition to their portfolio provided they are comfortable with sectoral regulations and macroeconomic dependencies.
Frequently Asked Questions (FAQs)
1. What is the price band for the HDB Financial Services IPO?
The IPO price band is fixed between ₹730 to ₹740 per share with a face value of ₹10 each.
2. What is the total issue size of the HDB IPO?
The total issue size is ₹12,500 crore, consisting of a fresh issue of ₹2,500 crore and an offer-for-sale (OFS) worth ₹10,000 crore.
3. When will the HDB Financial IPO allotment and listing take place?
The basis of allotment is expected to be finalized on June 30, 2025, and the IPO is scheduled to be listed on July 2, 2025, on both BSE and NSE.
4. What is the current GMP (Grey Market Premium) of HDB Financial IPO?
As of the latest update, the GMP stands at ₹50.5 per share, indicating a potential listing price of ₹790.5 and an expected listing gain of around 6.8%.
5. Who are the lead managers and registrar of the HDB IPO?
The IPO is being managed by reputed firms like JM Financial, Goldman Sachs, BofA Securities, Jefferies, IIFL, Motilal Oswal, and others. The registrar is MUFG Intime India Private Limited (formerly Link Intime).
Disclaimer
The above information is provided for educational and informational purposes only. It is based on publicly available data and updates as of the article’s publication date. We do not offer any investment advice. IPO investments are subject to market risks, and readers are advised to consult their financial advisor or conduct independent research before making any investment decisions. The Grey Market Premium (GMP) and subscription data are indicative and may vary closer to listing.
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