HDB Financial Services Limited, a leading retail-focused NBFC in India, has launched its much-awaited Initial Public Offering (IPO) worth ₹12,500 crore. Backed by strong fundamentals and a broad distribution network, the company is aiming to attract investors with a mix of fresh equity issue and Offer for Sale (OFS).

Let’s explore every aspect of the IPO including subscription status, anchor investor data, price band, valuation, and whether investors should subscribe for listing gains or stay cautious.

IPO Structure and Timeline

The HDB Financial IPO is a Book Built Issue of ₹12,500 crore, comprising:

• Fresh Issue of 3.37 crore shares worth ₹2,500 crore

• Offer for Sale of 13.51 crore shares worth ₹10,000 crore

Key Dates:

• IPO Opens: June 25, 2025

• IPO Closes: June 27, 2025

• Allotment Date: June 30, 2025

• Listing Date (Tentative): July 2, 2025

• Listing Exchange: BSE & NSE

Price Band, Lot Size & Market Capitalisation

• Price Band: ₹700 to ₹740 per equity share

• Lot Size: 20 shares

• Retail Minimum Investment: ₹14,800

• HNI Minimum Investment: 280 shares (14 lots), ₹2,07,200

• Estimated Market Capitalisation at ₹740/share: ₹61,387.93 crore

Use of IPO Proceeds

The Net Proceeds from the Fresh Issue will be used primarily for:

1. Augmenting Tier-I Capital base

2. Onward lending across verticals – Enterprise Lending, Asset Finance, and Consumer Finance

This capital infusion is critical for expanding its growing loan book while maintaining regulatory capital adequacy levels as per RBI’s NBFC-UL framework.

Financial Performance Overview

The company has shown a consistent increase in revenues and EBITDA over the last three fiscals:

Notably, FY25 PAT shows a dip over FY24, despite increased revenues, which may impact valuation sentiment.

Valuation Metrics and Ratios

• Pre-Issue EPS (FY24): ₹27.32

• Post-Issue EPS (FY24): ₹26.23

• Pre-Issue P/E: 27.08x

• Post-Issue P/E: 28.21x

• Industry P/E: 23x

• Return on Average Equity (ROAE): 14.72%

• Return on Net Worth (RoNW): 14.72%

These numbers reflect a fully priced IPO, leaving little room for upside unless the company exceeds its performance expectations post listing.

Anchor Investor Participation

The company has raised ₹3,368.99 crore from Anchor Investors on June 24, 2025, at the upper price band of ₹740.
A total of 4,55,27,026 equity shares were allotted to marquee institutions, showcasing strong institutional confidence.

However, Anchor allotments are part of the QIB quota, not additional demand, and thus shouldn’t be taken as a standalone signal for retail investors.

Live Subscription Status (As of 11:00 AM, June 27, 2025)

• Total Subscription: 1.77x on final day

• Strong participation from Qualified Institutional Buyers (QIBs)

• Moderate interest from Retail and HNIs so far

While the numbers are rising, they don't yet reflect an oversubscribed frenzy that would justify a premium listing.

Grey Market Premium (GMP) Analysis

The GMP for HDB Financial Services IPO is ₹0, indicating:

• No active grey market interest

• Neutral to cautious sentiment in the informal market

• No premium suggests listing at par or discount possible

⚠️ Note: Grey Market Premium is unofficial and unregulated. It's not a reliable metric for investment decisions and should be viewed only for educational reference.

How to Check Allotment Status

Once the allotment is finalized on June 30, 2025, investors can check their status by:

1. Visiting the Registrar’s website (MUFG Intime India)

2. Selecting HDB Financial Services IPO

3. Entering Application No. / PAN / DP Client ID

4. Submitting the form to get allotment status

Registrar & Lead Managers

• Registrar: MUFG Intime India Pvt Ltd

• Book Running Lead Managers (BRLMs):

  • JM Financial

  • IIFL Securities

  • Goldman Sachs

  • HSBC

  • Jefferies

  • Morgan Stanley

  • Motilal Oswal

  • BNP Paribas

  • UBS Securities

  • Nomura

  • Nuvama

  • BofA Securities

This extensive list reflects the high institutional attention the IPO is receiving.

Should You Invest in HDB Financial IPO?

Based on the details available:

✅ Pros:

• Strong brand under HDFC Group

• Diversified lending portfolio across customer segments

• Good revenue growth and operational efficiency

• High institutional backing

❌ Cons:

• Fully priced IPO with P/E above industry average

• Flat GMP suggests no immediate listing gains

• Slight decline in PAT in FY25 may worry some investors

• High dependency on financial market sentiment for re-rating

Verdict: Avoid for Listing Gains, Consider for Long-Term

Investors looking for short-term listing gains should stay cautious as flat GMP and full pricing offer little upside.

However, long-term investors who believe in the HDFC Group pedigree, NBFC sector potential, and India’s retail credit growth story may find value in this IPO if they can hold through possible short-term volatility.

The Upcoming IPOs in this week and coming weeks are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences, Suntech Infra Solutions, Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials.

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