HDB Financial Services IPO Set to Open Next Week, Grey Market Signals Strong Premium
MUMBAI, India – June 19, 2025 – HDB Financial Services, the NBFC wing of HDFC Bank, is launching the much-anticipated Initial Public Offering (IPO) next week, opening the offer to subscription from 25-27 June 2025. The market is buzzing with excitement, as the grey market premium (GMP) for the unlisted shares is already signalling a robust listing, trading at over ₹100 per share.
IPO Details and Structure
The IPO, which is expected to be among the biggest this year in the NBFC sector, comprises a fresh issue of ₹2,500 crore and an Offer For Sale (OFS) of ₹10,000 crore by its parent company, HDFC Bank. At present, HDFC Bank has a significant majority stake of 94.3% in HDB Financial Services. The bidding for anchor investors is scheduled for June 24, a day before the public subscription starts.
While the price band and lot size will be declared officially later, unlisted market sources and dealers expect the IPO could be quoted at something between ₹750 and ₹800. Should the grey market premium hold, it indicates a potential initial return of more than 12% for investors.
The fresh issue proceeds are mainly aimed towards bolstering the Tier-I capital base of the company for meeting future funding needs and also increasing the availability of funds for proprietary lending. The listing of HDB Financial Services also meets the regulatory requirement in that the Reserve Bank of India mandates all ‘Upper Layer’ NBFCs to be listed on stock exchanges by September 2025.
Grey Market Momentum
The grey market, which is the unofficial OTC market for unlisted shares, reflects strong investor appetite for HDB Financial Services. As of June 19, 2025, the shares are trading at a premium of approximately ₹93 to ₹104.5 over the expected issue price, indicating positive sentiment and anticipation of a healthy listing performance. The “subject to sauda” rate, which indicates the premium at which IPO applications are traded, is also hovering around ₹1,000.
Company Profile and Financials
Incorporated in 2007, HDB Financial Services is a well-diversified NBFC that covers three main segments: Enterprise Lending, Asset Finance, and Consumer Finance. It has a wide customer base, including salaried individuals, self-employed professionals, and small and medium enterprises (MSMEs).
The company boasted a gross loan book of ₹98,620 crore as of September 30, 2024, signifying a substantial Compound Annual Growth Rate (CAGR) of 20.93% since March 2022. HDB Financial Services recorded a year-on-year jump of 24%- from the interest income of ₹11,155 crore at the end of FY24 to ₹13,836 crore as of FY25. For FY24, the company’s PAT stood at ₹2,460 crore. The company has a strong branch network of more than 1,772 branches spread across 1,162 towns.
Industry Outlook and Expert Views
Analysts have called the IPO a significant event on account of the strong parentage of HDB Financial Services (HDFC Bank), a diverse portfolio, and growth impetus in an otherwise dynamic Indian financial services space. The NBFC sector, in itself, is expected to see strong growth going forward, with buoyant retail credit demand.
The IPO comes at a time when there is strong activity in the broader primary market, and the overall investor sentiment is largely positive due to ample liquidity and good signals from the equity markets. So, while there will be some short-term betting on possible listing gains from the issue, it will also be viewed as some possible long-term growth opportunities that a well-known player in the NBFC space will be able to offer. HDB Financial Services is likely to list on BSE as well as NSE on July 2, 2025, tentatively.
Reported by: Herohind News Desk
