Highlights: HDB Financial Services IPO subscribed 16.69x; Check IPO allotment, GMP, listing and other details

HDB Financial Services launched its much-anticipated Rs 12,500 crore IPO from June 25 to June 27, 2025. The issue includes a fresh offer of Rs 2,500 crore and an offer for sale worth Rs 10,000 crore. The price band is set between Rs 700 and Rs 740 per share, with a lot size of 20 shares. This bookbuilding IPO will be listed on the BSE and NSE. The total offer size is 16.89 crore shares, comprising both fresh capital and stake sales. The post-issue shareholding will rise from 79.39 crore to 82.77 crore shares. HDB Financial is a subsidiary of HDFC Bank.

HDB Financial Services’ ₹12,500-crore IPO, the largest ever by a non-banking financial company (NBFC) in India, saw robust demand on its final bidding day, June 27. The public issue was subscribed 16.69 times, receiving bids for over 217.66 crore shares against the offer size of 13.04 crore shares, according to NSE data.

The initial public offer (IPO) of HDB Financial Services received bids for 2,17,67,62,140 shares against 13,04,42,855 shares on offer, according to NSE data. Qualified Institutional Buyers (QIBs) subscribed 55.47 times, non-institutional investors 9.99 times, and Retail Individual Investors (RIIs) 1.41 times.

As of 8:35 PM on June 27, 2025, the Grey Market Premium (GMP) for the HDB Financial Services IPO stands at ₹54. With the upper price band set at ₹740, the estimated listing price is ₹794. This implies a potential listing gain of 7.3% per share, reflecting continued investor optimism ahead of the debut.

As of 7:35 PM on June 27, 2025, the Grey Market Premium (GMP) for the HDB Financial Services IPO has climbed to ₹57. With the IPO price band capped at ₹740, the estimated listing price is now projected to be ₹797. Based on this, the expected gain per share stands at approximately 7.70%, reflecting strong investor interest ahead of the listing.

HDB Financial Services’ highly anticipated IPO has drawn an impressive lineup of top investment banks, signaling the immense interest surrounding what is being called India’s largest non-banking financial company (NBFC) IPO to date. A total of 12 book running lead managers have been appointed to manage the public issue, reflecting both its scale and investor appeal.

Among the global and domestic financial heavyweights involved are BNP Paribas, JM Financial, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities & Capital Markets, IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and UBS Securities India. These firms will play a key role in facilitating the IPO, managing investor interest, and overseeing the share sale process.

As of June 27, 2025, 6:36 PM, the Grey Market Premium (GMP) for the HDB Financial Services IPO stands at ₹57. With the IPO price band capped at ₹740, the estimated listing price is now projected to be ₹797. This translates to an expected gain of 7.70% per share for investors based on current market sentiment.

HDB Financial Services has rolled out its much-anticipated initial public offering (IPO) worth ₹12,500 crore, making it not only the biggest IPO by a non-banking financial company (NBFC) but also one of the largest public offerings in the past two decades. The three-day subscription window runs from June 25 to June 27, with shares priced in the range of ₹700 to ₹740 each.

The latest Grey Market Premium (GMP) for the HDB Financial IPO stands at ₹57 as of June 27, 2025, 5:45 PM. With a price band set at ₹740, this implies an estimated listing price of ₹797. Based on these figures, investors can expect a listing gain of approximately 7.70% per share.

On the final day of bidding, the HDB Financial Services IPO received an overall subscription of 17.65 times. The Qualified Institutional Buyers (QIBs) led the demand, subscribing 58.64 times their allocated quota, while Non-Institutional Investors (NIIs) followed with 10.55 times. Retail investors also showed interest, with the segment booked 1.51 times.

The company has a strong customer base of 19.4 mn as of March 2025 (growth of 2x in the last three years) and a vast product portfolio. Besides, the company has a strong presence across India, particularly in tier 4 cities. So, continuous product innovation, additions of customers, and geographies for high-growth markets like MSME, LAP and personal loans are expected to drive AUM growth.

HDB has served 19.2 million customers in FY25, registering a CAGR of 25.45% over FY23-25—highlighting its rapid customer base expansion. As of March 2025, secured loans accounted for 73% of HDB’s total gross loans, while unsecured loans comprised the remaining 27%, reflecting a predominantly collateral-backed lending portfolio.

As of March 2025, HDB Financial Services’ total gross loans were 27% unsecured, down from almost 29% a year earlier. These loans are not backed by collateral, which limits recovery options in case of borrower default. As a result, any material deterioration in the performance of the unsecured portfolio could lead to elevated credit losses and adversely affect the company’s asset quality and profitability.

HDB Financial’s IPO has now reached its final day of bidding. In the grey market, its shares are currently being quoted with a premium of Rs 60 over the issue price. The indicates that the stock could debut around Rs 800, roughly 8% higher than the upper end of the IPO price band, which is set at Rs 740 per share.

That said, the grey market premium is not an official indicator. The actual listing price could swing either way depending on how the broader market performs and how investors respond on the listing day.

On the final day of bidding, the HDB Financial Services IPO so far received an overall subscription of 9.69 times. The Qualified Institutional Buyers (QIBs) led the demand, subscribing 28.09 times their allocated quota, while Non-Institutional Investors (NIIs) followed with 9.11 times. Retail investors also showed interest, with the segment booked 1.27 times.

HDB Financial touched the whole spectrum of the consumer’s finance requirement from MSME financing, vehicles financing to personal loans. AUM grew by a CAGR of 24% over FY23-FY25. The company generates the margin in a range of 7.5-8% over the last two fiscal. In FY25, it generated ROA/ROE at 2.2%/14.7%. Management said the company established a set up independent from HDFC Bank across functions including sourcing, underwriting, operations though it benefits from strong HDFC brand recognition.

One of the key changes expected in the HDB Financial is in its ownership structure. Currently, HDFC Bank holds a 94.6% stake in the company. However, that figure is set to come down once the IPO concludes. The company’s draft red herring prospectus (DRHP) indicates that HDFC Bank will part with a substantial chunk of its holding. This move is aimed at meeting SEBI’s public shareholding norms, which require a minimum of 25% public float for listed companies.

Besides HDFC Bank, a few long-time employees and early-stage investors are also likely to sell a portion of their holdings through the IPO. Still, HDFC Bank will retain majority control of HDB Financial even after the listing.

HDB Financial Services aims to expand its footprint in underpenetrated markets and broaden its product offerings. It plans to enhance its presence in smaller cities, increase its loan book in sectors like microfinance and small business loans, and leverage technology for superior customer engagement and efficient operations.

“HDB’s initial issue is priced at 3.4x TTM P/B (considered equity raise for calculating TTM BV) 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. We assign a “SUBSCRIBE” rating to the initial issue of the HDB Financial Service,” said Deven Choksey Research in its IPO note.

On the third and final day of bidding, the HDB Financial Services IPO was booked 2.67 times overall so far. Within that total, the retail segment saw a 1.03-times subscription, qualified institutional buyers (QIBs) bid 2.66 times, and the non-institutional investor (NII) portion attracted the strongest response at 6.18 times.

“At the upper price band, the company’s FY25 price-to-book (P/B) ratio stands at 3.7x, with a post-issue market capitalization of Rs 6,13,879.4 million. Backed by the strong parentage of HDFC Bank, India’s secondlargest private bank by total assets, the company offers a well-diversified product portfolio with robust granularity, scale, and sound lending quality. We consider the IPO fairly valued and recommend a “SUBSCRIBE” rating,” said the brokerage firm Anand Rathi in its report.

A key focus of the company’s credit risk management framework has been to establish strong credit underwriting and collections capabilities, which have ensured sustainable growth. HDB has instituted a robust and comprehensive underwriting and collections process led by the company’s Chief Credit Officer and supported by a dedicated and experienced team of professionals.

“At the upper price band of Rs 740, HDB is available at a P/B ratio of 3.4x (FY25-post issue basis), which appears to be fairly priced compared to its peers. 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 basis,” said Geojit Investments.

As the HDB Financial Services IPO enters its final day, investor interest is gradually building. So far, the issue has been subscribed 1.85 times overall, led by demand from non-institutional investors (NIIs), whose portion has been subscribed 4.33 times.

The Qualified Institutional Buyers (QIBs) have bid 1.39 times their reserved quota, while the retail portion is lagging slightly, with a subscription of 0.86 times.

Founded in 2007, HDB Financial Services is a non-deposit-taking NBFC that falls under the RBI’s “Upper Layer” classification,meaning it is subject to tighter regulatory oversight due to its size and operations.

While it operates under the HDFC Group, HDB has its own governance system, including a separate board, management, and internal risk checks.

The company has gradually expanded its presence across metro cities and smaller towns. Its lending portfolio includes consumer loans, MSME finance, and asset-backed lending, catering to a broad mix of borrowers.

Since its inception, HBD has been able to develop, refine and enhance a strategy for launching relevant, cost-effective and scalable new products. Through a deep understanding of customer segments, the company has been able to diversify three business verticals by adding new products that address the specific needs of customers. As illustrated in the map below, HBD’s deep understanding of local nuances across India has enabled the company to ensure that it is targeting the right customers with the right products in each region.

Diversify and expand addressable customer segments by widening and enhancing the product offering. Continue to expand pan-India omni-channel distribution network. Further strengthen and improve the robust risk management framework as well as underwriting and collections capabilities to minimise the risk of credit losses.

Today is the last day to Subscribe to the HDB Financial IPO. Most brokerages have suggested Subscribe for the long-term. According to Deven Choksey Research, the IPO pricing implies attractive valuation, “HDB’s initial issue is priced at 3.4x TTM P/B (considered equity raisefor calculating TTM BV) compared to the peer average of 4.4x TTMP/B. We believe the issue is attractively priced considering itsparentage, peer group ROA average and its growth potential.”

Several big names are handling the HDB Financial Services IPO. The list of book-running lead managers includes BNP Paribas, JM Financial, BofA Securities, Goldman Sachs, HSBC, IIFL Capital, Jefferies, Morgan Stanley, Motilal Oswal, Nomura, Nuvama, and UBS. These investment firms are responsible for managing the public issue.

Meanwhile, MUFG Intime India Private Limited (formerly Link Intime) is managing the IPO’s backend process as the official registrar. They will oversee tasks like allotment of shares, refunds, and listing coordination.

Geojit has a Subscribe on HDB Financial IPO. They believe that the IPO, at the upper price band of Rs 740, “is available at a P/B ratio of 3.4x (FY25-post issue basis), which appears to be fairly priced compared to its peers.”

Additionally the other factors that support their ‘Subscribe for long-term’ recommendation include-

-Diversified lending portfolio

-Strong parentage support

-Omni-channel distribution platform

-Granular lending model

-Customer expansion

-Asset quality and better growth prospects