NBFC HDB Financial Services, supported by HDFC Bank, began acting on a strong comment today. The stock opened on both NSE and BSE at 835, which is 12.84% higher than the IPO price of 740. This strong list yielded specific returns to early investors. In addition, the surplus defeated the expected increase in 8-10%of the gray market. Investors showed a strong interest in the company, and market experts see it as a positive sign. Overall, HDB Financial started a concrete start to stock exchanges, which led to a discussion in the financial market.
HDB Financial Services IPO: Size, Demand & Grey Market Trend
- HDB Financial Services launched a big IPO worth ₹12,500 crore (about US $1.5 billion). The IPO included ₹2,500 crore from fresh shares and ₹10,000 crore through shares sold by HDFC Bank. This helped HDB raise money for future growth and let HDFC Bank reduce its stake.
- Investors showed strong interest in the IPO. The overall subscription was 16.69 times. QIBs led the way with 55.5× bids, while NIIs subscribed 9.99×. Retail investors also joined in large numbers, and final numbers will come soon.
- Before the listing, the grey market premium (GMP) stayed between ₹65 and ₹75. This showed investors expected a listing price between ₹805 and ₹815, which matched the actual opening. This strong demand in the grey market showed high confidence in the company.
Market Reaction and Company Valuation
HDB Financial Services received a strong response from the stock market on the listing day. The market price increased by 69 270 crore (about $ 8.09 billion), before it was above the price of $ 60,000 (about $ 7.1 billion). This big jump shows interest in strong investors’ trust and company in the future.
Experts say this price increased when investors rely on HDFC Bank, HDB’s original company. They also believe in HDB’s strong economic and development capacity in India’s growing NBFC market. This successful list also posted several awards for HDFC Bank’s total business.
Why Investors Choose to Invest in HDB Financial Services
1. Strong support from HDFC Bank
HDB Financial is supported by HDFC Bank, which is about 94% of it. Since HDFC Bank is one of the most reliable banks in India, investors saw HDB as a safe and stable company to invest in.
2. Large and balanced debt portfolio
HDB under Management (AUM) by March 2024, manages a large loan book of 90,620 crore and provides loans to retail and commercial customers, which helps to increase low risk and earnings.
3. Fast growth in trade
From FY22 to FY24, AUM of HDB grows at a speed of 21% each year. Experts also expect the benefits per share to increase by 27% per year from FY25 to FY28. This rapid growth made it attractive for long -lasting investors.
4. Good control of bad loans
HDB keeps its bad debt low. Gross NPA is 1.90% and NET NPA is 0.63%. It also has a 61% buffer to handle a loan. This shows that the company manages its money well.
5. Positive Outlook on Interest Rates
Experts think the RBI may reduce interest rates soon. If that happens, HDB can earn more from its loans by improving its net interest margins (NIMs). This would increase its profits.
6. Wide Reach Across India
HDB has over 1,770 branches and around 90,000 employees across the country. It serves nearly 19 million customers. This wide reach gives it a strong position in both cities and rural areas.
Expert Views on HDB Financial’s Listing and Future Outlook
- Mahesh M. Ojha – Hensex Securities
Mahesh Ojha called HDB’s stock market debut “very encouraging.” He said this strong start could boost investor confidence in upcoming IPOs. According to him, the listing shows that investors support trusted companies with strong parent firms and solid business models. - Prashanth Tapse – Mehta Equities
Prashanth Tapse advised investors to hold HDB shares for 3–5 years. He believes India is entering a period of strong credit growth, which will help NBFCs like HDB. He also told retail investors to buy more shares if the price drops, as HDB’s business looks strong for the long term. - Emkay Global
Emkay Global gave HDB a buy rating and set a target price of ₹900—about 21.6% higher than the IPO price. They said HDB has strong financials, a wide loan portfolio, and good growth potential. Emkay believes HDB is a top NBFC choice in the Indian market. - Bhavik Joshi – INVasset PMS
Bhavik Joshi said the high grey market premium showed strong early demand. However, he warned that future gains depend on steady earnings and low loan losses. He advised investors to watch the company’s results and management closely in the coming quarters.
Risks and Market Overview
1. Regulatory Caution:
The RBI’s draft rules from October 2024 suggest banks should reduce overlapping business with their NBFC subsidiaries. Because of this, HDFC bank might need to lower its stake in HDB Financial to below 20%. This change could affect how well the two companies work together.
2. NBFC Valuations:
HDB’s stock trades at about 3.4 times its book value. This is lower than some other NBFCs like Cholamandalam (5.7 times) and Bajaj Finance (6 times). This means HDB may be cheaper compared to its peers.
3. IPO Market Recovery:
HDB Financial had the biggest IPO in India in 2025, after Hyundai Motor’s big IPO in 2024. It is also the second-largest IPO since 2022. This shows that India’s IPO market is coming back strong. There are many big IPOs planned in July, like LG Electronics India and JSW Cement. The strong debut of HDB’s shares is a good sign for these upcoming IPOs.
Next Steps and What to Expect
- Short Term:
The strong listing may increase trading activity soon. Experts suggest buying shares when prices drop. However, they warn not to rely too much on grey market prices. - Medium to Long Term:
HDB has strong business and good growth chances. Experts say investors should consider holding the shares for 3 to 5 years to get good returns. - Key Things to Watch:
Watch how well HDB manages debt recovery, interest margins (NIMs), and credit costs. Doing well in these areas will keep investors confident.
Bottom Line
HDB was a strong listing in financial services, which was about 13% above the price of the stock exchange listing. This success shows that investors depend on their original company and development capacity. While the rules and profit margins will affect the future, good starts for both companies and investors are to increase confidence in India’s stock market.
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