HDB Financial Services IPO Today: A Comprehensive Overview

India is witnessing one of its largest financial market events of 2025: the debut of HDB Financial Services, the NBFC arm of HDFC Bank. As the IPO closes today, we explore the key details, investor sentiment, and what lies ahead.

HDB IPO Snapshot 

Company: HDB Financial Services Ltd.
Parentage: 94% owned by HDFC Bank 
Issue Size: ₹12,500 crore — ₹2,500 crore fresh issue and ₹10,000 crore OFS
Price Band: ₹700–740 per share
Lot Size: Minimum 20 shares (₹14,800 at upper band)
Timeline:

• Anchor book: June 24

• IPO open: June 25–27

• Allotment: June 30

• Listing: July 2 (BSE & NSE) 

Subscription Data 

Despite strong institutional interest—anchored by marquee names like BlackRock, LIC, Abu Dhabi Investment Authority, Goldman Sachs, etc.—retail subscription has lagged, beginning at just ~30% on Day 1, and reaching ~76% on today, June 27.

Market Sentiment & Grey Market Premium

• GMP Movement:

  • June 18: ₹93–103

  • June 23: ₹48–52 (halved from earlier highs) 

  • June 25 morning: ₹74 GMP (~10% expected listing gain)

  • June 27: GMP steady at ₹74 (≈10%)

This grey market premium suggests an 8%–10% upside at listing, with expectations converting strong anchor demand into early trading gains.

Strategic Rationale & Use of Proceeds

1. Regulatory Push: RBI mandates listing of upper-layer NBFCs by September 2025.

2. Strengthen Tier-I Capital: Fresh ₹2,500 crore to reinforce lending capacity.

3. Extensive Reach: 1,680+ branches, 80% presence outside top 20 cities, oriented towards MSME, consumer, and asset financing.

4. Growth Fundamentals: FY24 revenue growth ~15%, AUM ~₹1.1 lakh crore; robust loan diversification (73% secured, 27% unsecured).

Analyst Views & Risks

• Positives:

  • Discounted valuation vs peers (P/B ~3–3.4×), backed by AAA credit rating.

  • Diverse loan book, strong parentage, and advanced “phygital” model.

  • Most brokerages (Centrum, SBI Securities, Bajaj Broking, Mirae Asset, etc.) recommend subscribing, particularly for a 3–5 year horizon.

• Risks:

  • Interest rate volatility affecting profitability (PAT declined ~12% in FY24).

  • High OFS means limited fresh capital benefits (₹10,000 crore).

  • Retail demand subdued early on.

  • Market exuberance in unlisted space led to pre-IPO disappointment: some saw losses in grey/unlisted holdings.

Should You Subscribe? 

• Yes, if:

  • You are a medium- to long-term investor (3–5 years).

  • You believe in credit growth in NBFC sector and HDB’s regional strength.

  • You’re comfortable with rate risks and large OFS.

• Be Cautious, if:

  • You’re seeking listing-day flips—GMP indicates a moderate 8%–10% gain.

  • You prefer high initial oversubscription and strong retail momentum.

  • You’re wary of macro volatility impacting NBFC margins.

What Happens Next?

• June 27: IPO bidding closes.

• June 30: Allotment announced, refunds and demat credit on July 1.

• July 2: Listing on NSE & BSE.
  Monitor grey market, pre-list trading sentiment, and broader macro–market cues.

Conclusion

HDB Financial Services IPO marks a watershed moment: the largest NBFC listing of 2025, backed by a marquee parent and formidable distribution. With a balanced growth story and reasonable valuation, it offers an attractive long-term play. However, subdued retail uptake and sectoral risk mean investors should calibrate based on timeline and risk appetite.