As of the latest update, the retail portion was subscribed 79%, the non-institutional investor (NII) segment at 4.01 times, and the qualified institutional buyer (QIB) category at 108%. The employee quota saw a 3.36 times subscription, while the shareholder reservation portion was subscribed 2.24 times.
In the grey market, HDB shares were trading at a premium of Rs 60–62, up from Rs 53–55 on Day 2. This implies a grey market premium (GMP) of around 8%, compared to 7% previously.
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Ahead of the IPO launch, HDB Financial Services raised Rs 3,369 crore from anchor investors by allotting 4.55 crore shares at Rs 740 apiece—the upper end of the price band.
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HDB Financial IPO details
The public issue consists of a fresh equity issue worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank, which currently holds a 95.5% stake in the company. The price band has been fixed at Rs 700–740 per share.
At the upper end of the price band, the IPO values HDB Financial at 3.7 times its projected FY25 post-issue book value. Analysts consider the valuation reasonable, citing the company’s operational strength and the backing of parent HDFC Bank.
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Should you subscribe to the HDB Financial Services IPO?
At the upper end of the price band, HDB Financial’s IPO values the company at 3.7 times its FY25 post-issue book value, a level analysts consider reasonable given its solid financial performance and the brand support from parent HDFC Bank.
Several brokerage firms have issued ‘Subscribe’ ratings for the IPO. SBI Securities, Ventura Securities, and Anand Rathi highlighted the company’s strong fundamentals, stable asset quality, and long-term growth potential as key strengths.
In its note, Ventura Securities stated, “We believe the IPO is fairly priced given the company’s improving profitability, robust risk management, and capital adequacy.”
Anand Rathi echoed this view, commenting, “The IPO offers an opportunity to invest in a high-quality, retail-focused NBFC that benefits from HDFC Bank’s reach, reputation, and systems. The improving return ratios and earnings visibility make it a compelling long-term bet.”
HDB Financial Services IPO key dates
The IPO opened for subscription on June 25 and will close on June 27. The basis of allotment is expected to be finalized on June 30, with the listing scheduled for July 2 on the NSE and BSE.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
