COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
HDB Financial IPO: How you can apply in 3 categories; check latest GMP, risk, views & more

HDB Financial IPO: How you can apply in 3 categories; check latest GMP, risk, views & more

HDFC Bank-promoted HDB Financial Services is launching its IPO from June 25, to June 27. The issue priced between Rs 700-740 apeice with a lot size of 20 shares.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Jun 24, 2025 4:14 PM IST
HDB Financial IPO: How you can apply in 3 categories; check latest GMP, risk, views & moreIncorporated in October 2001, Shree Tirupati Balajee Agro Trading Company manufactures and sells Flexible Intermediate Bulk Containers (FIBCs).

HDFC Bank-promoted HDB Financial Services is launching its initial public offering (IPO) from Wednesday, June 25, to Friday, June 27. The issue is priced at Rs 700-740 with a lot size of 20 equity shares. Retail investors will need a minimum investment of Rs 14,800 for one lot. The total issue size is Rs 12,500 crore, including a fresh issue of Rs 2,500 crore and an offer-for-sale by HDFC Bank worth Rs 10,000 crore. The lead managers include JM Financial, BNP Paribas, and Morgan Stanley India, among others.

Advertisement

Related Articles

Eligible shareholders of HDFC Bank, who held shares as of June 19, can apply under the shareholders category, which reserves 10% or Rs 1,250 crore of the issue. Additionally, Rs 20 crore worth of shares are reserved for eligible shareholders of HDB Financial Services. Employees can apply under the same reserved category. The company aims to use the funds to strengthen its tier-I capital base for future lending needs and expand its operational capabilities.

The IPO allows eligible HDFC Bank shareholders and employees to bid for a minimum of 20 shares and in multiples of 20 thereafter, with the total bid amount capped at Rs 2,00,000. This equates to a maximum of 13 lots or 260 shares, worth Rs 1,92,400 under the shareholders' category. Retail investors can also bid similarly, but for more than 13 lots, bids will fall under the non-institutional investors (NII) category.

Advertisement

HDB Financial Services is valued at an FY25 price-to-book ratio of 3.4 times at post-issue capital at the upper price band, which is reasonable as compared to its peers considering the growth and return ratio profile, said Sharekhan by Mirae Asset.

"Strong parentage and much smaller in size as compared its core peer provides a long runway for growth. Additionally, favourable macro environment will act as tailwind for the sector in the near to medium term. We expect healthy listing gains and remain assertive from a medium to long-term perspective," it said.

The extensive branch network of HDB Financial Services, with 1,772 branches across 31 states and union territories, supports its service offerings outside India's 20 largest cities. This strategic positioning supports its diverse geographical service model, allowing it to cater to a wide range of customers, enhancing its market reach.

Advertisement

HDB Financial's major customer base comes from underserved and aspirational segments, which are typically avoided by commercial banks. Management aims to maintain a stable ROA and deliver a consistent AUM growth, said Nirmal Bang Institutional Equities, without rating the issue.

The grey market premium (GMP) for the IPO is currently at Rs 70 per share, indicating a potential 10% premium over the upper price band. This suggests a positive market reception and potential listing gains. The IPO was last seen with a GMP of Rs 48-50 a day ago.

Investors should note that bids by eligible HDFC Bank shareholders in both the shareholders reservation and retail or non-institutional categories will not be treated as multiple bids. In cases of joint bids, the sole or first bidder must be an eligible HDFC Bank shareholder.

The book running lead managers of the IPO include prominent financial institutions such as Goldman Sachs, HSBC Securities & Capital, and UBS Securities India. Their involvement is expected to facilitate a smooth IPO process and attract considerable interest from investors.

HDB Financial is a diversified NBFC, with a goal of having an optimal mix across products, while maintaining a balanced approach to secured and unsecured loans in their loan book, said Systematix Shares and Stocks (India). However, the promoter may be required to significantly reduce its ownership in the company to less than 20 per cent on account of overlapping business with their promoter, it cited as a key risk.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jun 24, 2025 4:14 PM IST
    Post a comment0