HDB Financial Services, a subsidiary of HDFC Bank, launched its initial public offering (IPO) from June 25 to June 27, 2025, raising ₹12,500 crore ($1.5 billion). The IPO, India's largest non-banking financial company (NBFC) offering in recent years, comprised a ₹2,500 crore fresh issue and a ₹10,000 crore offer for sale (OFS) by HDFC Bank, which reduced its stake from 94.3% to 74.19%. The price band was set between ₹700 and ₹740 per share, with a minimum bid lot of 20 shares. The IPO attracted strong institutional investor interest, raising ₹3,368 crore from anchor investors and achieving oversubscription of 16.7 times by the final day, with qualified institutional buyers (QIBs) bidding 55.5 times, non-institutional investors (NIIs) 10 times, retail investors 1.4 times, and employees 5.7 times.
The grey market premium (GMP) indicated potential listing gains of around 8-10%. HDB Financial shares debuted on July 2, 2025, on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) at ₹835 per share, a 12.8-13.5% premium over the issue price, valuing the company at over $8 billion. The stock surged as much as 14-15% on its first day of trading, marking the biggest IPO listing gains among Indian IPOs exceeding ₹10,000 crore since the Covid-19 pandemic. Emkay Global initiated coverage of HDB Financial shares with a buy rating and a target price of ₹900, projecting over 20% upside. The IPO proceeds are expected to strengthen HDB Financial's position as the seventh-largest diversified retail-focused NBFC in India by total gross loan book, with reported FY25 revenue of ₹16,300 crore.
#MarketsWithBS | HDB Financial Services rises 6% a day after listing; stock up 20% in 2 days. Read details here
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