HDB Financial IPO: Listing gains likely as GMP rises; market debut date, analyst views

As the allotment for HDB Financial Services is out, shares of the shadow lender are set to make their Dalal Street debut on Wednesday, July 02, 2025. The company is likely to deliver a double digit listing pop if one goes by the grey market premium for the issue, which has seen some rise lately.

A day before its debut at Dalal Street, HDB Financial Services was commanding a grey market premium (GMP) of Rs 72-75 apiece, suggesting a listing pop of nearly 10 per cent for the investors over its issue price of Rs 740 apiece. However, the GMP stood at Rs 60-65 a day ago in the unofficial market.

Despite aggressive valuations and risks profile of the company, market participants continue to remain positive on the issue in the long term and suggest investors to hold it from a long-term perspective. They also suggest that fresh investment can be made in the counter on correction during the volatility.

HDB Financial IPO is well‑placed to ride India’s huge credit boom—with lending expected to grow 13‑15 per cent annually to Rs 297 lakh crore by FY28, said Shruti Jain, Chief Strategy Officer at Arihant Capital Markets. "Its strong digital onboarding and focus on under‑banked markets give it a long‑term edge. Investors with a multi‑year horizon can consider holding for steady growth."

Prashanth Tapse, Senior VP (Research) at Mehta Equities believes that the robust response signals market confidence in HDB's business model, parentage, and long-term growth potential in the NBFC space. If the listing meets expectations, it would reaffirm investor appetite for high-quality financial services plays, especially those backed by trusted legacy institutions, he said.

"Given the strong subscription momentum and prevailing bullish sentiment in the market, we recommend holding the stock for the long term, as HDB Financial Services is strategically positioned to benefit from India’s structural credit growth, especially within the retail and SME financing segments," he added suggesting investors to add stock during post listing corrections.

The IPO of HDB Financial Services ran for bidding between June 25-27 as NBFC sold its shares in the price band of Rs 700-740 per share with a lot size of 20 shares. It raised a total of Rs 12,500 crore from its IPO. The HDB Financial fetched about 46.7 lakh applications, attracting bids for worth Rs 1,61,080.71 crore for its Rs 9,131 crore net offer, which was overall subscribed 16.69 times.

The quota for qualified institutional bidders (QIBs) was booked 55.47 times, fetching bids worth Rs 1,31,696.50 crore. The allocation for non-institutional investors (NIIs) was booked 9.99 times. Retail portion was booked 1.41 times, while the employees' portion was booked 5.72 times. Shareholders' category attracted bids for 4.26 times.

HDB Financial Services has garnered strong institutional demand. It operates across diversified segments – enterprise lending, asset finance, and consumer finance – with a low NPA ratio of 2.26 per cent. However, the pricing implies a valuation premium, and retail investors should approach cautiously, said Harshal Dasani, Business Head of INVasset PMS.

"Post-listing, retail investors should wait for price stabilization and monitor the stock’s performance over the first 3-6 months. Investors should keep an eye on quarterly earnings, particularly asset quality and profitability trends, as these factors could influence future growth. Retail investors should consider entering only once the stock stabilizes," he said.

Incorporated in 2007, Ahmedabad-headquartered HDB Financial Services is a retail-focused, non-banking financial company. Its lending products are offered through the three business verticals- enterprise lending, asset finance and consumer finance. It also offers business process outsourcing (BPO) services to its parent HDFC Bank.

BNP Paribas, JM Financial, Bofa Securities India, Goldman Sachs (India), HSBC Securities & Capital Markets, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal Investment, Nomura Financial Advisory, Nuvama Wealth, UBS Securities India were the book running lead managers of the HDB Financial IPO, while MUFG Intime India (Link Intime) served as the registrar for the issue.