The highly anticipated HDB Financial Services IPO opens for subscription today, marking India’s biggest non-banking financial company (NBFC) issue to date. With a massive size and strong HDFC Bank backing, investor attention is sky-high. But the question remains—should you subscribe or stay away?
💼 IPO Details at a Glance:
Issue Size: ₹9,000 crore (approx)
Price Band: ₹875 – ₹920 per share
Lot Size: 16 shares and multiples thereafter
Issue Dates: June 25 to June 27, 2025
Listing Date (Tentative): July 3, 2025
GMP (Grey Market Premium): ₹150 – ₹170 as of June 24
🏦 About HDB Financial Services
A subsidiary of HDFC Bank, HDB Financial Services is one of India’s leading NBFCs offering personal loans, business loans, gold loans, and asset financing. As of FY24, it has a loan book of ₹78,000 crore and a presence across 1,500+ branches nationwide.
📈 Expert Views: Subscribe or Avoid?
✔️ Why You Should Consider Subscribing:
Strong Parentage: Backed by HDFC Bank, offering brand credibility and funding support.
Robust Financials: Net profit grew 18% YoY in FY24; NPA levels are under control.
Market Expansion: Strong retail lending footprint in Tier 2 and Tier 3 cities.
Attractive Valuation: Reasonable P/B and P/E multiples compared to peers.
❌ Reasons for Caution:
NBFC Sector Risk: Sensitive to rate hikes, regulatory scrutiny, and economic slowdowns.
Valuation Risk: Some analysts argue the IPO is fully priced.
High Competition: Faces stiff rivalry from Bajaj Finance, Tata Capital, etc.
🧠 Analyst Verdict:
Most brokerages including Motilal Oswal, ICICI Securities, and Nuvama have rated it a ‘Subscribe with Caution’, citing strong fundamentals but advising investors to watch market sentiment.
❓ FAQ Section
Q1: What is the HDB Financial IPO price band?
A: The IPO is priced between ₹875 and ₹920 per share.
Q2: Is the HDB Financial IPO a good investment?
A: Experts are largely positive but advise due diligence due to NBFC sector risk.
Q3: What is the GMP (Grey Market Premium) for HDB IPO?
A: As of the latest update, the GMP is hovering around ₹150–₹170.
Q4: When will HDB Financial IPO list on the stock exchange?
A: The tentative listing date is July 3, 2025.
Q5: What are the risks involved in investing in HDB Financial?
A: Regulatory risks, credit quality of borrowers, and market volatility are key concerns.
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Reported by Benny on June 25, 2025.
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