As of 10:39 am, the retail portion was subscribed 38%, non-institutional investors (NIIs) at 100%, while the qualified institutional buyer (QIB) segment remained muted at just 1%. The employee quota was subscribed 2.03 times, while the shareholder reservation portion saw a 91% subscription.
In the grey market, HDB shares were trading at a premium of Rs 53–55, down from Rs 74–75 on Day 1, indicating a decline in the grey market premium (GMP) to around 7% from 10%.
Also Read: HDB Financial Services IPO: Should you subscribe? Here’s what brokerages say
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.
Life Insurance Corporation of India (LIC) received the largest allocation, picking up 6.53% of the anchor portion, amounting to approximately Rs 220 crore.
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HDB Financial IPO details
The IPO comprises a fresh issue of shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent company HDFC Bank, which currently holds a 95.5% stake in the NBFC. The price band is set at Rs 700–Rs 740 per share.
At the upper end of the price band, the IPO values the company at 3.7 times its projected FY25 post-issue book value. Analysts believe the valuation is fair, citing HDB Financial’s operational strength and the strong parentage of HDFC Bank as key positives.
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 the Economic Times)
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