The much-awaited Rs 12,500 crore IPO of HDB Financial Services opens today, June 25, kicking off what is being seen as the biggest public issue by a non-banking finance company (NBFC) in India. It is also the largest public issue of the year so far. The offer is open till June 27. It includes a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which currently owns 95.5% of the company.
The company has set a price band of the issue between Rs 700 and Rs 740 per share.
HDB Financial Services IPO: GMP update
In the grey market, the shares of HDB Financial is trading at a premium of Rs 74 per share, hinting at a possible listing price near Rs 814. However, it is important to note that it is an unofficial market place and the actual listing price may vary depending on the market sentiment.
With the three day bidding window now open and the listing expected on both NSE and BSE in the first week of July, here’s a look at what brokerages are saying about this mainboard IPO.
HDB Financial Services IPO: Bajaj Broking – Medium to long term investors may consider
According to a report by Bajaj Broking, the IPO appears fairly priced compared to peers like Bajaj Finance and Shriram Finance. The brokerage noted, “Despite grey market indications of a higher value, the pricing appears aligned with peers on a price-to-book basis.”
It highlights the company’s AUM growth (22-29% YoY) and a 24% increase in customer base but flags concerns around asset quality and rising provisioning costs. Bajaj Broking believes investors with a medium- to long-term horizon may find the issue worthwhile if HDB improves operational efficiency post-listing.
HDB Financial Services IPO: Deven Choksey Research -‘SUBSCRIBE’ for attractive valuation
Deven Choksey Research has given the IPO a thumbs up. The brokerage underlines HDB’s extensive reach over 1,700 branches with more than 70% in underbanked geographies and its digitally enabled loan distribution model.
The report added, “HDB’s initial issue is priced at 3.4x TTM P/B compared to the peer average of 4.4x TTM P/B. We believe the issue is attractively priced considering its parentage, peer group ROA average and its growth potential.” The firm expects HDB to benefit from rising rural and urban credit demand, helped by broader economic and policy tailwinds.
HDB Financial Services IPO: Anand Rathi – Well positioned for growth, ‘SUBSCRIBE’ recommended
Anand Rathi also recommends subscribing to the IPO, citing HDB’s strong customer base, 19.2 million as of March 2025 and its pan-India hybrid model combining physical branches and digital channels.
The brokerage noted, “HDB Financial Services is India’s second-largest and third-fastest-growing NBFC franchise.” At the upper end of the price band, it estimates the company’s FY25 price-to-book ratio at 3.7x, with a post-issue market cap of Rs 61,387.94 crore. The firm believes HDB’s diversified loan book and funding strategy position it well for expansion.