HDB Financial IPO: The IPO has not yet opened in the market, but investors’ heartbeats have already increased. HDB Financial Services, which is the non-banking financial subsidiary of HDFC Bank, has created a storm in the grey market. Its shares are trading at a premium of ₹ 53 in the unlisted share market, that is, a grey market premium (GMP) of about 7.1%.
With this, the big question now is-is this initial buzz an indication of a strong listing in the IPO? Or is it a trap of high valuation?
Why is there so much excitement in the grey market? (HDB Financial IPO)
The IPO is going to open on June 25. But even before that, HDB’s unlisted stocks were trading in the price range of Rs 1200 to Rs 1350, which is 70–80 percent higher than its official price band of Rs 700–740 per stock.
On one hand, this difference is creating FOMO (Fear of Missing Out) among investors. On the other hand, some people are also calling it overhyped valuation.
What do brokers say? (HDB Financial IPO)
The leading brokers of the market have shown enthusiasm towards this IPO. SBI Securities has given it a ‘Subscribe’ rating.
Brokers believe that at 3.2x–3.4x Price-to-Book value (FY25), this valuation sits around big players like Bajaj Finance and Shriram Finance. Strong brand value, HDFC Bank backing, and AAA rating make it different from other NBFCs.
Where is the strength of HDB Financial? (HDB Financial IPO)
7th largest retail focused NBFC in India. Gross loan book of ₹90,220 crore as of FY24
Three major verticals:
- Enterprise Lending
- Asset Finance
- Consumer Finance
Operational since 2007 with independent underwriting and risk management
IPO Structure and Size (HDB Financial IPO)
- Total issue size: ₹12,500 crore
- Fresh issue: ₹2,500 crore
- Offer for Sale (OFS): ₹10,000 crore
- Price Band: ₹700 – ₹740 per share
- Lot size: 20 shares
Special Reservations:
- For employees: ₹20 crore
- For shareholders: ₹1,250 crore
The estimated market cap of the company after IPO will be ₹58,205 crore – ₹61,388 crore.
Big names are handling (HDB Financial IPO)
BNP Paribas, BofA Securities, Goldman Sachs, HSBC, JM Financial, IIFL, Jefferies, Morgan Stanley, Motilal Oswal, Nomura, Nuvama, UBS
Registrar: MUFG Intime India
What should investors do? (HDB Financial IPO)
If you are a long-term investor, HDB can be an attractive option with a built-in brand trust and well-governed business model. For short-term traders, the premium seen in the grey market indicates potential listing gains, but do not ignore valuation risks
