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HDB Financial Services IPO: Latest GMP before listing; post listing strategy & more

HDB Financial Services IPO: Latest GMP before listing; post listing strategy & more

HDB Financial Services sold its shares in the price band of Rs 700-740 apiece, which could be applied for a minimum of 20 shares and its multiples to raise Rs 12,500 crore between June 25-27.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Jul 2, 2025 8:38 PM IST
HDB Financial Services IPO: Latest GMP before listing; post listing strategy & more

HDB Financial Services, a subsidiary of HDFC Bank, is set to make its stock market debut on Dalal Street today, Wednesday, July 02. The non-banking financial company (NBFC) has generated significant interest, as seen in its grey market premium (GMP), which suggests a listing pop of about 10 per cent over its issue price. As of the latest data, the premium in the unofficial market stood at Rs 72-75 per share.

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The initial public offering (IPO) of HDB Financial Services, held from June 25 to June 27, was priced between Rs 700-740 per share, with investors able to purchase in lots of 20 shares. The IPO successfully raised Rs 12,500 crore, which included a fresh issue of shares worth Rs 2,500 crore and an offer-for-sale (OFS) component of Rs 10,000 crore led by HDFC Bank Ltd.

Brokerage firms view the IPO favourably, recommending it for long-term investment. The offering attracted an impressive response, with approximately 46.7 lakh applications, culminating in bids worth Rs 1.32 lakh crore. The overall subscription rate was 16.69 times across various categories.

Mahesh Ojha, AVP-Research at Hensex Securities said that the investors should hold this stock for a long-term period and those who did not get the allotment should try to enter around its IPO price, if the market turns volatile. "It is a portfolio stock, which can be kept for the long-term," he reiterated.

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Post-listing, retail investors should wait for price stabilization and monitor the stock’s performance over the first 3-6 months, said Harshal Dasani, Business Head, INVasset PMS. "Retail investors should consider entering only once the stock stabilizes or shows signs of consistent growth, capitalizing on India’s expanding credit market over the next five years," he said.

The qualified institutional buyers (QIBs) category was subscribed 55.47 times, drawing bids amounting to Rs 1,31,696.50 crore. Non-institutional investors (NIIs) also showed strong interest, subscribing 9.99 times. Meanwhile, the retail portion was subscribed 1.41 times, and the employees' category saw a 5.72 times subscription. The shareholders' section was oversubscribed 4.26 times.

HDB Financial 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 long‑term edge. Investors with a multi‑year horizon can consider holding for steady growth," she said.

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"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," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Those who did not receive any allotment may consider accumulating on any post-listing corrections, particularly during short-term volatility triggered by broader market movements. As we see HDB Financial Services offers a value-driven opportunity with both defensive and growth characteristics, best suitable for investors with a 3–5 year investment horizon, he added.

Established in 2007 and headquartered in Ahmedabad, HDB Financial Services is focused on retail financial solutions. The company operates through three business verticals: enterprise lending, asset finance, and consumer finance. It also provides business process outsourcing (BPO) services to its parent company, HDFC Bank.

The IPO was managed by a consortium of leading financial institutions, including JM Financial, Bofa Securities India, BNP Paribas, Goldman Sachs (India), HSBC Securities & Capital Markets, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal Investment, Nomura Financial Advisory, Nuvama Wealth, and UBS Securities India. MUFG Intime India (Link Intime) acted as the registrar. Trilegal served as the advisor for the issue.

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: Jul 2, 2025 7:12 AM IST
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