HDB Financial Services Share Price Live: Stock makes a strong debut, opens with 12.84% premium at ₹835 on NSE
Experts predict that the HDB Financial Services IPO expected listing price to have a healthy 8–10% listing gain, reflecting strong investor appetite. HDB Financial Services IPO allotment status was finalised on Monday, June 30.
Ahead of the HDB Financial Services IPO listing, HDB Financial Services IPO GMP today is +65. This indicates HDB Financial Services share price was trading at a premium of ₹ 65 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of HDB Financial Services share price is indicated at ₹ 805 apiece, which is 8.78% higher than the IPO price of ₹ 740.
HDB Financial Services IPO opened for subscription on Tuesday, June 24, and closed on Thursday, June 26. HDB Financial Services IPO subscription status on the last bidding day was 16.69 times. The company fixed a price band of ₹ 700 to ₹ 740 per share for its IPO.
HDB Financial Services is recognized as the seventh largest diversified retail-centric non-banking financial company (NBFC) in India, with a total gross loan portfolio of ₹ 902.2 billion as of March 31, 2024, among its peers in the NBFC sector, according to the CRISIL Report.
The Reserve Bank of India (RBI) categorizes the company as an Upper Layer Non-Banking Financial Company (NBFC-UL). The NBFC offers a wide array of lending products tailored to cater to the growing needs of its customer base through a comprehensive omni-channel distribution network. HDFC Bank owns a 94.3% share in HDB Financial prior to the IPO.
According to Tarun Singh, the 13% listing premium strikes a measured note, respectable without being euphoric, much like HDB Financial itself. The market appears to have carefully weighed its dual proposition, the stability of HDFC lineage against the challenges of a maturing NBFC sector.
Moving forward, HDB Financial Services ability to translate its parentage into consistent returns will determine whether today's listing proves to be a starting point or a peak. For now, it stands as a thoughtful addition to India's financial services landscape neither revolutionary nor disappointing, but importantly, credible.
Prashanth Tapse advises that those who did not receive any allotment may consider accumulating on any post-listing corrections, particularly during short-term volatility triggered by broader market movements. As we see HDB Financial Services offers a value-driven opportunity with both defensive and growth characteristics, best suitable for investors with a 3–5 year investment horizon.
Prashanth Tapse, Research Analyst, Mehta Equities Ltd stated that Listing was in line with our expectations, reflecting strong investor appetite. The IPO garnered over ₹ 1.61 lakh crore in bids, underscoring massive institutional and retail interest. This makes HDB's offering the second most subscribed IPO among ₹ 10,000+ crore issues, trailing only the record-breaking Tata Technologies listing. However, it did fall short of surpassing the all-time high ₹ 3 lakh crore+ subscription seen in the Bajaj Housing Finance IPO.
Given the healthy listing prevailing bullish sentiment in the market, we recommend holding the stock for the long term, as HDB Financial Services is strategically positioned to benefit from India's structural credit growth, especially within the retail and SME financing segments.
According to Bhavik Joshi, Business Head, INVasset PMS, HDB Financial's market debut, though modest with a 12% premium , reinforces the market's calibrated optimism. The strong QIB interest and overall 17x subscription had built expectations of a sharper pop, but the pricing at 3.8x FY25 book likely capped short-term upside.
That said, the company's HDFC lineage, granular loan book, and improving asset quality metrics continue to make it a structurally sound NBFC play. In the current rate-easing environment, where cost of funds could gradually soften, HDB's lending spread visibility and low net NPA profile remain its key strengths. The muted retail response during the IPO may reverse over time as earnings stability becomes evident in quarterly prints. Post-listing, the stock may see institutional accumulation on dips, but for long-term investors, this listing is less about day-one pop and more about participating in a high-quality compounder in India's formal credit cycle.
The promoter of the company is HDFC Bank Limited. As of the date of this Red Herring Prospectus, the promoter possesses 750,596,670 equity shares with a face value of ₹ 10, representing 94.04% of the company's pre-Offer issued, subscribed, and paid-up equity share capital (on a fully diluted basis). As of the date of this Red Herring Prospectus, the Board consists of nine Directors, including one Executive Director and eight Non-Executive Directors, of which seven are Independent Directors (including two female Independent Directors).
The Emkay report highlighted a significant regulatory risk. The draft circular from the RBI released in October 2024 suggests that banks and their subsidiaries should not engage in overlapping business activities. If this is enacted, it could require HDFC Bank to lower its ownership in HDB Financial Services to under 20% within a designated period, which might influence the company's strategic approach.
In spite of this challenge, Emkay is confident that HDB Financial Services, with its robust fundamentals, stable leadership, and consistent financial results, is positioned for a gradual increase in market valuation.
Brokerage Emkay anticipates that HDB Financial Services will exhibit a 20% compound annual growth rate (CAGR) in assets under management (AUM) and a 27% CAGR in earnings per share (EPS) from FY25 to FY28, fueled by its robust origination network, improved capital adequacy following its IPO, and a favorable interest rate climate.
With the Reserve Bank of India (RBI) likely to implement early repo rate reductions, net interest margins (NIMs) are expected to increase, thereby enhancing profitability. The brokerage forecasts that HDB Financial Services will reach return on assets (RoA) and return on equity (RoE) of 2.7% and 17%, respectively, by FY28. The company's significant operating expenses, arising from its direct origination model, are anticipated to be balanced by relatively higher net yields.
HDB Financial Services share price made a bumper debut on the bourses today. On NSE and BSE, HDB Financial Services share price opened at ₹ 835 per share, 12.84 % higher than the issue price of ₹ 740.
The IPO consists of a fresh issue of ₹ 2,500 crore along with an offer for sale of ₹ 10,000 crore from HDFC Bank.
The net proceeds are intended to be used to enhance the company's Tier-I Capital base, allowing them to fulfill future capital needs for their various business segments, including Enterprise Lending, Asset Finance, and Consumer Finance. These needs are anticipated to emerge from the growth of the company's operations and assets, and to maintain adherence to the capital adequacy regulations established by the RBI as they may evolve.
Highly granular retail loan book, bolstered by a large and rapidly growing customer base with a focus on serving the underbanked customer segments. Large, diversified and seasoned product portfolio with a sustainable track record of diversification, growth and profitability through the cycles. Tailored sourcing supported by an omni-channel and digitally powered pan-India distribution network. Comprehensive systems and processes contributing to robust credit underwriting and strong collections. Advanced technology tools driving enhanced customer experience and efficiency across each stage of the customer lifecycle. High-quality liability franchise with access to low cost, diversified borrowing sources and the highest credit rating. Distinguished parentage of HDFC Bank, India's largest private bank, enjoying strong trust and brand equity with consumers.
According to the red herring prospectus (RHP), the company's competitors include Bajaj Finance Ltd (with a P/E of 34.3), Sundaram Finance Ltd (with a P/E of 28.1), L&T Finance Ltd (with a P/E of 17.9), Mahindra & Mahindra Financial Services Ltd (with a P/E of 14.5), Cholamandalam Investment and Finance Company Ltd (with a P/E of 31.4), and Shriram Finance Ltd (with a P/E of 13.0).
According to Bhavik Joshi, Business Head, INVasset PMS, the current grey market premium suggests a potential 9–11% listing pop. That said, post-listing performance will depend on sustained earnings visibility, credit cost control, and how the broader NBFC sector fares in a softening rate cycle. Investors should approach tomorrow's listing with measured optimism, viewing it as a gateway to long-term participation in India's evolving credit ecosystem.
Ahead of the share listing of HDB Financial Services today, Emkay Global Financial Services has started coverage on the company with an optimistic outlook, giving it a 'Buy' rating and setting a target price of ₹ 900 per share for June 2026. This suggests a possible gain of 22% from the IPO price.
Emkay's positive stance is supported by HDB Financial Services' very diversified and granular lending portfolio, where the top 20 accounts account for only 0.34% of its assets under management (AUM). The firm serves more than 19 million customers and has an extensive geographical presence with 1,770 branches spread across 31 states and union territories.
According to Prashanth Tapse, Research Analyst, Mehta Equities Ltd, after years of anticipation, HDB Financial Services is finally set to debut on the Indian stock exchanges, and early indicators point to a healthy 8–10% listing gain, reflecting strong investor appetite.
The IPO garnered over ₹ 1.61 lakh crore in bids, underscoring massive institutional and retail interest. This makes HDB's offering the second most subscribed IPO among ₹ 10,000+ crore issues, trailing only the record-breaking Tata Technologies listing. However, it did fall short of surpassing the all-time high ₹ 3 lakh crore+ subscription seen in the Bajaj Housing Finance IPO.
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