HDB Financial IPO: Will It List At A Premium? 2nd July

HDB Financial IPO Allotment Status, Listing Date, GMP Trends & Expert Analysis

The HDB Financial IPO has emerged as one of the most anticipated and oversubscribed issues in recent years. Backed by HDFC Bank, HDB Financial Services, a leading non-banking financial company (NBFC), saw its IPO oversubscribed by 16.69 times, driven by strong institutional demand. This article provides a detailed analysis of the HDB Financial IPO, including allotment status, GMP trends, expert views, key risks, and financial performance.

HDB Financial IPO: Subscription & Allotment Overview

The three-day bidding window for the HDB Financial IPO closed on June 27, with allotment finalized on June 30. The company is expected to be listed on both the BSE and NSE on Wednesday, July 2, 2025. The IPO was priced in the range of ₹700 to ₹740 per share and attracted strong interest from institutional investors.

Total subscription: 16.69x
QIB category: 55.47x
NII category: 9.99x
Retail category: 1.41x
Issue size: ₹12,500 crore (₹2,500 crore fresh + ₹10,000 crore OFS)

HDB Financial IPO GMP & Expected Listing Price

As of June 30, 2025, the grey market premium (GMP) for the HDB Financial IPO stood between ₹66 and ₹70. With the upper price band set at ₹740, the estimated listing price is in the range of ₹806 to ₹810, indicating a premium of 8.9% to 9.46%.

GMP (latest): ₹70
Expected listing price: ₹810
Expected gain: 9.46%

Where to Check HDB Financial IPO Allotment Status

The registrar for the HDB Financial IPO is MUFG Intime India Private Limited. Investors can check their allotment status on the registrar’s official website using their PAN, application number, or Demat account details.

Expert Views on HDB Financial IPO

Leading brokerage firms have shared positive views on the HDB Financial IPO, citing strong fundamentals, consistent financial performance, and robust parentage as key strengths.

SBI Securities:

“The company is backed by strong governance, high credit rating, and brand equity of HDFC Bank. With healthy asset quality and attractive valuations, we recommend investors ‘Subscribe’ to the issue.”

LKP Securities:

“The company’s interest income has grown at a CAGR of 24.49%, and PAT rose from ₹1,950 crore in FY23 to ₹2,170 crore in FY25. RoA and RoE remain healthy. The valuation is in line with industry peers.”

Financial Performance Snapshot

As of September 30, 2024, HDB Financial Services showcased robust financials:

Gross Loan Book: ₹98,620 crore
AUM: ₹90,230 crore
Net Profit (FY24): ₹2,460.8 crore
ROA: 3.03%
ROE: 19.55%
Net Interest Margin (NIM): Over 7%
Gross NPA: 1.90%
Net NPA: 0.63%

These figures underline the company’s strong lending practices and prudent risk management, making the HDB Financial IPO an attractive offering for long-term investors.

Company Overview & Business Segments

HDB Financial Services is India’s seventh-largest NBFC and operates across three major verticals:

Enterprise Lending: Offers secured and unsecured loans to small businesses for working capital, equipment purchases, and business upgrades.
Asset Finance: Provides loans for commercial vehicles like trucks, tractors, and construction equipment.
Consumer Finance: Caters to individuals with short-term loans for purchasing electronics, vehicles, and household goods.

As of March 31, 2025, the company had 1,771 branches in 1,170 towns across 31 States and Union Territories, with 80% of its presence outside the top 20 Indian cities.

Key Risks Associated with HDB Financial IPO

While the outlook for the HDB Financial IPO remains positive, investors should be mindful of certain risks:

High competition in the NBFC and banking sector.
Interest rate fluctuations could impact net interest margins.
Asset quality deterioration due to macroeconomic headwinds.
Valuation risks as the post-issue P/BV is at 3.88x and P/E at 28.2x.

Institutional Backing & Lead Managers

The HDB Financial IPO is being managed by a consortium of top global and domestic investment banks:

Lead Managers: BNP Paribas, JM Financial, BofA Securities, Goldman Sachs India, HSBC Securities, IIFL Capital, Jefferies India, Morgan Stanley, Motilal Oswal, Nomura, Nuvama Wealth, UBS Securities.

This robust lineup reflects the company’s strong credibility and investor confidence.

Retail Investment & Minimum Lot Size

Retail investors had a modest response to the HDB Financial IPO, with 1.41x subscription in the retail category. The minimum investment required was ₹14,000 for a lot size of 20 shares.

Future Outlook for HDB Financial Services

With strong parentage, rapid growth in the MSME and retail credit space, and deep rural penetration, HDB Financial Services is well-positioned to capitalize on India’s credit expansion. The company’s financial strength and operational efficiency signal a promising future, making the HDB Financial IPO a compelling long-term bet.

Conclusion

The HDB Financial IPO stands out due to its robust fundamentals, solid parentage, and promising growth trajectory. With a strong showing in the grey market and positive institutional sentiment, the IPO is expected to deliver modest listing gains. However, long-term investors may find more value in the company’s potential to scale and sustain growth across India’s expanding credit ecosystem.

Keep checking this space for updates on HDB Financial IPO listing, market performance, and investor reactions.