By Samannay Biswas
HDB Financial Services Ltd, a retail-focused non-banking financial company (NBFC) promoted by HDFC Bank, is poised to make its stock market debut on Wednesday, July 2, 2025, at 10:00 AM on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Rs 12,500 crore initial public offering (IPO), comprising a fresh issue of Rs 2,500 crore and an offer-for-sale (OFS) of Rs 10,000 crore by HDFC Bank, garnered massive interest, receiving an overall subscription of 17.65 times. The strong investor appetite for the IPO, which opened on June 25, underlines confidence in HDB Financial鈥檚 growth trajectory and solid parentage. The issue received bids for 217.7 crore shares against an offer of 13.04 crore, with Qualified Institutional Buyers (QIBs) leading the rush at 55.47 times oversubscription, followed by Non-Institutional Investors (NIIs) at 10 times. The retail portion saw 1.5 times subscription, while employees bid 5.72 times the reserved quota. Allotment and Listing Details The allotment status was finalised on Monday, June 30. Investors can check their allotment details via the registrar鈥檚 website, MUFG Intime India Pvt Ltd (Link Intime), or through the BSE platform by entering their PAN and application number. Credit of shares to Demat accounts of successful bidders and refunds to non-allottees are scheduled for July 1, a day before listing. The grey market premium (GMP) for HDB Financial is hovering around Rs 57, translating to an expected listing premium of around 8 per cent over the issue price. Analysts expect a stable debut, buoyed by the company’s operational strength and long-term growth potential. Use of Proceeds and Financial Performance Of the total issue size, Rs 2,500 crore from the fresh issue will be utilised to strengthen HDB Financial鈥檚 Tier-I capital base, supporting future lending activities across enterprise loans, asset finance, and consumer credit. According to Geojit Investments, 鈥淭he total gross loans of HDB grew at a CAGR of 23.5 per cent over FY23鈥揊Y25, reaching Rs 1,068.8 billion by March 31, 2025. The loan book is highly diversified, with the top 20 customers accounting for less than 0.34 per cent of total advances.鈥 BP Equities, in its IPO note, added, 鈥淒espite relatively modest return ratios and profitability, we see long-term promise due to HDB’s strong brand lineage, AAA credit rating, pan-India reach, and diversified liabilities. At the upper price band, the stock is valued at 3.9x its FY25 book value, which is fairly in line with sector peers. We recommend a 鈥楽ubscribe鈥 rating for long-term investors.鈥 Company Profile Founded in 2007, HDB Financial Services is one of India鈥檚 leading NBFCs and a key subsidiary of HDFC Bank. The company primarily serves the retail lending segment, offering products such as personal loans, business loans, auto loans, gold loans, and loan against property. It operates with a pan-India footprint and has built a robust risk management and technology infrastructure. Market Outlook The IPO’s enthusiastic reception highlights investor optimism in India’s NBFC sector, particularly those backed by established banking entities. With a strong pipeline of loan disbursals, prudent risk management, and support from parent HDFC Bank, HDB Financial Services is well-positioned to capitalise on growing demand in the formal credit space. The market will be watching closely on July 2 to see if the shares live up to the grey market expectations and offer healthy listing gains. However, experts also caution that long-term returns will depend on the company鈥檚 ability to maintain asset quality and expand profitably amid rising competition and regulatory scrutiny in the NBFC space. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.