HDB Financial Services IPO Date Highlights: The much anticipated and the biggest NBFC issue of the year- Rs 12,500 crore initial public offering (IPO) of HDB Financial Services opened for subscription on June 25. It will remain open until Friday, June 27. On Day 2 of bidding, the HDB Financial IPO has been fully subscribed.
The mainboard IPO combines a fresh issue of Rs 2,500 crore and an offer for sale of Rs 10,000 crore from HDFC Bank. HDFC Bank is the promoter of HDB Financial. HDFC Bank holds 750,596,670 equity shares of the company of face value of Rs 10, equivalent to 94.04 per cent of the pre-offer issued.
HDB Financial Services IPO: 5 key factors to watch out for
If you are keen about applying for the issue, here are 5 important factors to watch
1. Price Band: The HDB Financial Services IPO price band has been fixed in the range of Rs 700 – 740 per equity share of the face value of Rs 10.
2. GMP: The HDB Financial Services IPO is up nearly 6.82%. This is still at a significant discount to the spike seen in the unlisted share price before the IPO date was announced. Prices were hovering around Rs 1,250 per share. This is nearly 50% more than the higher end of the price band and implies notional loss for those who are invested in the unlisted share price.
3. Combination of OFS, fresh issue: The HDB Financial Services IPO is a combination of fresh issue and offer for sale. The proceeds from the fresh issue would be used for expansion.
4. Biggest NDFC issue: The Rs 12,500 crore HDB Financial Services IPO is among the largest NBFC issues in recent times and the 5th biggest, in terms of issue size, in the last 20 years. Apart from this, the top 5 IPOs in last 2 decades include Hyundai, LIC, Paytm, Coal India.
5. Key risk: The primary risk for the HDB Financial Services IPO is that the company uses HDFC name under a licencing agreement. A change in this arrangement may have future implications.
Keep following this blog for all the latest update on the HDB Financial Service IPO, the business dynamics and GMP trends. We will be bringing you fresh updates every 30 minutes.
HDB Financial Services IPO Highlights GMP Price Band Listing Date Business Details IPO Latest Updates
HDB Financial Services IPO Live Updates: HDB Financial raises ₹3,369 crore from anchor investors ahead of IPO
HDB Financial Services, a subsidiary of HDFC Bank, has secured ₹3,369 crore from anchor investors as part of its initial public offering
HDB Financial Services IPO Live Updates: HDB Financial IPO driven by regulatory push as RBI rules loom
The IPO of HDB Financial is not just about raising capital, it is also a move to meet regulatory requirements. According to the company’s Draft Red Herring Prospectus (DRHP), the Reserve Bank of India (RBI) classified HDB as an NBFC-Upper Layer in 2023, mandating it to go public within three years.
However, further regulatory pressure may be on the horizon. A draft circular issued by the RBI in October 2024 proposes banning overlapping financial products between banks and their group entities. This could directly impact HDFC Bank and HDB Financial, both of which currently offer similar services. If the draft guidelines are implemented, HDFC Bank may be required to reduce its stake in HDB to below 20%, unless specifically exempted by the central bank.
HDB Financial Services IPO Live Updates: HDFC Bank's current equation with HDB Financial Services
While HDFC Bank will remain the majority shareholder in HDB Financial Services post-IPO, its influence over the NBFC’s operations will still be substantial.
A large part of HDB’s strong credit ratings—such as CRISIL AAA and CARE AAA—is closely tied to the credibility and backing of HDFC Bank. A drop in HDFC Bank’s ownership below 51% could trigger loan covenants, potentially leading to repricing or recall of borrowings.
Additionally, HDB uses the HDFC Bank brand and logo under a licensing agreement, which is only valid as long as it remains a subsidiary. Any significant stake dilution could put this agreement at risk, with just a three-month notice period required to terminate branding rights.
As of September 2024, around 7.71% of HDB’s income came from services provided to HDFC Bank, such as back-office operations and collections. Any disruption in this partnership could have a meaningful impact on HDB’s revenue.
HDB Financial Services IPO Live Updates: Non-institutional segment oversubscribed
The IPO saw strong interest from non-institutional investors, with that segment receiving 2.29 times subscription. In contrast, the quota for qualified institutional buyers (QIBs) was subscribed 90%, while the portion reserved for retail individual investors (RIIs) saw a more modest 64% subscription.
HDB Financial Services IPO Live Updates: HDFC Bank to offload ₹100 Billion stake in HDB Financial ahead of IPO
HDFC Bank, which owns a 94% stake in HDB Financial Services, is set to sell shares worth up to ₹100 billion in a three-day share sale running from Wednesday to Friday. In addition, HDB Financial will issue fresh shares totaling ₹25 billion as part of its upcoming initial public offering (IPO).
HDB Financial Services IPO Live Updates: IPO subscribed 37% on Day 1, issue closes tomorrow
On the first day of bidding, HDB Financial Services’ IPO saw a 37% subscription. The IPO of HDFC Bank’s non-banking financial arm is set to conclude tomorrow, June 27.
HDB Financial Services IPO Live Updates: IPO sees strong demand with $1.19 billion in bids
HDB Financial Services, marking the HDFC Group’s first public float in seven years, attracted bids worth up to ₹101.63 billion ($1.19 billion) at the upper end of its ₹700–₹740 price band. According to exchange data, the offering was subscribed 1.06 times the number of shares on offer.
HDB Financial Services IPO Live Updates: Check the latest GMP
Ahead of its stock market debut, the company's unlisted shares were trading at a grey market premium (GMP) of 7.16% over the IPO price, at Rs 793 per share, according to data from Investorgain. IPO Watch reported a similar GMP of around 7%. The current GMP marks a sharp decline from the Rs 104.5 per share quoted by both platforms prior to the IPO opening for public subscription. However, it has shown a slight uptick compared to yesterday’s figures.
HDB Financial Services IPO Live Updates: HDB Financial Services IPO fully subscribed amid strong retail demand
HDB Financial Services’ initial public offering (IPO) has been fully subscribed. The issue saw an overall subscription of 1.06 times. Retail Individual Investors (RIIs) led the charge with a remarkable 60 times subscription, while Non-Institutional Investors (NIIs) bid 1.98 times their allotted quota. Qualified Institutional Buyers (QIBs) subscribed 90% of their reserved portion.
HDB Financial Services IPO Live Updates: Subscription status
The initial public offer of HDB Financials has been subscribed to a total of 97% as of 3:55 PM on the second day of its bidding. There was not much enthusiasm from the retail buyers as the category was booked 0.64 times as of Day 02. Meanwhile, the non-institutional investors booked the issue more than twice. The employee section was subscribed to a total of 2.90 times.
HDB Financial Services IPO Live Updates: Nirmal Bang on HDB Financial
"We compare HDB with Bajaj Finance and also with other vehicles, MSME, Consumer financiers like Chola, M&M Finance, Shriram Finance and L&T Finance. HDB’s asset quality is superior to peers on the back of its strong ownership and management pedigree. Its loan growth has been in line with peers over the last 3 years. However, we note that owing to HDB’s prudent focus on the quality of customers, it earns a lower spread vis-à-vis peers," said Nirmal Bang in an IPO note.
HDB Financial Services IPO Live Updates: Mehta Equities on HDB Financials
On valuation parse, at the upper price band of Rs 740, the issue is asking a market cap of Rs 61,388 crore. Based on FY25 earnings and fully diluted post-IPO paid-up capital, the company is asking for a price-to-book ratio (P/B) of 3.5x, which seems fairly valued, looking at its industry average of 3.5-4x, said Rajan Shinde, Research Analyst with Mehta Equities.
HDB Financial Services IPO Live Updates: Risks in HDB Financial
Deterioration in borrower credit quality, especially in unsecured or SME loans, could lead to higher NPAs and provisioning requirements. HDB is unable to meet its payment obligations when they fall due in normal and stressed circumstances. Plus, it has an operational risk arising from systems failure, human error, fraud or external events.
HDB Financial IPO saw traction on Day 2 of bidding, with overall subscription reaching 81% by midday on Day 2 so far. Retail investors subscribed to 57% of their allotted quota, while the non-institutional investor (NII) segment showed strong interest, getting subscribed 1.73 times.
The qualified institutional buyers (QIBs), however, remained relatively cautious, with just 21% of their portion being bid for so far.
HDB Financial Services IPO Live Updates: BP Wealth says HDB Financial is a Subscribe over long term
"The issue is valued at a P/B ratio of 3.9x at the upper price band based on FY25 book value, which we believe to be fairly valued, compared to its peers. Considering the compelling factors, we recommend a 'Subscribe' rating to this issue from a long-term perspective," said BP Wealth in an IPO note.
HDB Financial Services IPO Live Updates: Objectives of the issue
The company proposes to utilise net proceeds towards funding the augmentation of company’s Tier–I capital base to meet the company’s future capital requirements including onward lending under any of the company’s business verticals. Secondly, the raised funds will be used to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time.
HDB Financial Services IPO Live Updates: About the company
HDB Financial Services, established in 2007, is a key player in India’s non-banking financial company (NBFC) space, with a focus on retail lending. It offers a range of loan products for individuals and small businesses. But HDB’s operations go beyond just credit, it also provides business process outsourcing (BPO) services like back-office support, sales assistance, and collections management.
The company follows a “phygital” model. Its large branch network is supported by in-house tele-calling teams and third-party agents, helping it connect with customers through both traditional and modern channels.
HDB Financial Services IPO Live Updates: Subscription update
The Rs 12,000 crore HDB Financial Services IPO appears to be gradually building. On the second day of its bidding today, the overall subscription stood at 0.58 times so far.
The response has been strongest from non-institutional investors (NIIs), who subscribed to 1.21 times their allotted quota. In contrast, retail investors have taken a slower pace, with bids coming in for 46% of the shares reserved for them. Meanwhile, qualified institutional buyers (QIBs) are yet to make a move, having subscribed to just 1% of their portion so far.
HDB Financial Services IPO Live Updates: Key players of the issue
A total of 12 book-running lead managers have been appointed to manage the public issue.
The list includes some of the most prominent names in the financial world: BNP Paribas, JM Financial, BofA Securities India, Goldman Sachs India, HSBC Securities, IIFL Capital, Jefferies India, Morgan Stanley, Motilal Oswal Investment Advisors, Nomura, Nuvama Wealth Management, and UBS Securities.
On the other hand, MUFG Intime (formerly Link Intime) has been appointed as the registrar for the issue.
HDB Financial Services IPO Live Updates: HDB's asset and liability profile
HDB operates a well-balanced lending portfolio across three segments: Enterprise Lending at 39%, Asset Finance at 38%, and Consumer Finance at 23%. As of FY25, the average ticket sizes in these segments stood at approximately Rs 6.2 lakh, Rs 8.9 lakh, and Rs 0.5 lakh, with average tenures of 6, 4, and 2 years, respectively. On the liability side, HDB maintains a diversified funding base, enabling it to raise capital at competitive rates and tenors through both fixed and floating-rate instruments, supporting stable and cost-effective growth.
HDB Financial Services IPO Live Updates: Anand Rathi on IPO
“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 Anand Rathi in its IPO research report.
HDB Financial Services IPO Live Updates: HDB Financial's loan book growth
HDB Financial Services, backed by the strong parentage of HDFC Bank, is the seventh-largest NBFC in India and is rapidly expanding its presence in the retail and MSME credit space. As of March 2025, the total loan book stood at Rs 1.07 lakh crore, achieving a robust 2-year CAGR of 23.5%.
HDB Financial Services IPO Live Updates: allotment and listing details
The share allotment for the HDB Financial IPO is likely to be finalised on Monday, June 30. The company’s shares are expected to make their stock market debut on Wednesday, July 2, with listings scheduled on both the BSE and NSE.
HDB Financial Services IPO Live Updates: Geojit investments on IPO
"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.
HDB Financial Services IPO Live Updates: Fund utilisation
The funds raised from HDB Financial’s fresh issue will be used to strengthen its capital base and support future lending operations. At the same time, the offer-for-sale (OFS) portion of the IPO will allow parent company HDFC Bank to partially exit its stake. This will significantly reduce HDFC Bank’s holding in the subsidiary.
HDB Financial Services IPO Live Updates: GMP update
The grey market premium (GMP) for the HDB Financial Services IPO saw a decline, signalling a slight dip in investor enthusiasm. Initially, the IPO was commanding a premium of around Rs 74, hinting at a possible 10% listing gain over the issue price. However, recent trends show the GMP has cooled off to Rs 50.5, translating to an estimated listing price of Rs 790.5, about 6.8% above the upper price band of Rs 740.
It is important to remember that GMP figures are unofficial and purely indicative, they can change rapidly based on broader market cues.
HDB Financial Services IPO Live Updates: Subscription status Day 1
The Rs 12,500 crore IPO of HDB Financial Services entered its second day of subscription today, after receiving a moderate response from investors on Day 1. According to BSE data, the issue was subscribed 37% overall, with over 4.86 crore shares bid for against the total 13.04 crore shares on offer.
Among the three investor categories, non-institutional investors (NIIs) showed the most interest, bidding for 76% of the shares reserved for them. Retail investors followed, subscribing to 30% of their allotted quota. The qualified institutional buyer (QIB) portion is expected to see more traction in the coming sessions.
HDB Financial Services IPO Live Updates: HDB Financial Services IPO opens to lukewarm investor response
HDB Financial Services IPO Live Updates: First HDFC Group offering since 2018
The HDB Financial IPO stands out as the first public offering by an HDFC group company since HDFC Asset Management went public in 2018. Notably, it also marks the first IPO launched under the HDFC Bank umbrella following its merger with HDFC, making it a significant milestone for the group.
HDB Financial Services IPO Live Updates: Loan quality remains a key risk factor
One of the major risks highlighted for HDB Financial Services is the quality of its loan portfolio. The company’s gross Stage 3 loans, which reflect stressed or non-performing assets, have shown volatility, declining from 4.99% in March 2022 to 1.90% as of September 2024.
According to the Draft Red Herring Prospectus (DRHP), “Non-payment or default by our customers, our inability to provide adequate provisioning coverage for non-performing assets, or changes in regulatorily mandated provisioning requirements may adversely affect our financial condition and results of operations.”
This indicates that while asset quality has improved, it remains a critical area of concern for investors and regulators alike.