HDB Financial Services Makes Impressive Market Debut with 12.84% IPO Premium


HDB Financial Services Makes Impressive Market Debut with 12.84% IPO Premium



HDB Financial Services marked a strong entry into the stock market on Wednesday, debuting at ₹835 per share, a 12.84% premium over its IPO price of ₹740. The stock opened ₹95 higher on both BSE and NSE, showcasing robust investor interest after a highly subscribed initial public offering.

By 10:06 AM, shares had climbed further, trading around 13.6% above issue price.

IPO Oversubscribed 16.69 Times

The ₹12,500 crore IPO was oversubscribed 16.69 times, led primarily by Qualified Institutional Buyers (QIBs), whose allocation was oversubscribed 55.47 times. However, retail investors showed caution, subscribing only 1.41 times their reserved portion.

According to Tarun Singh, MD of Highbrow Securities, investors recognize HDB’s strategic position as a diversified NBFC backed by HDFC Bank’s distribution strength. He noted that the high QIB interest reflects confidence in the company’s “phygital” reach and its consistent 23% loan book CAGR.

Strong Fundamentals Back Investor Optimism

Analysts at Emkay Global initiated coverage with a ‘Buy’ rating and a target price of ₹900 by June 2026, citing solid fundamentals and strong growth potential.

They praised HDB’s:

  • 19 million+ customer base
  • Diversified lending portfolio with minimal concentration risk
  • Focus on rural markets and low-to-mid-income segments
  • Efficient direct sourcing model

Emkay forecasts 20% AUM and 27% EPS CAGR over FY25–28, with projected RoA of 2.7% and RoE of 17% by March 2028.

IPO Structure and Utilization

The IPO included:

  • ₹2,500 crore fresh equity issue
  • ₹10,000 crore Offer-for-Sale (OFS) by HDFC Bank, the promoter

The proceeds will be used to enhance Tier-I capital, supporting future business growth, including additional lending capacity.

Notable Highlights

  • Market capitalization on listing: ₹69,658.72 crore
  • Price band for IPO: ₹700–₹740
  • Anchor investment raised: ₹3,369 crore
  • HDFC Bank continues to hold a 94.36% stake
  • This is India’s second-largest IPO in three years, after Hyundai’s ₹27,000 crore issue

The IPO was managed by a consortium of leading financial institutions including JM Financial, Goldman Sachs, HSBC, Morgan Stanley, and others.

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