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HDB Financial Services IPO Allotment Likely Today; Listing on July 2 Expected

Prime Highlights

  • Final allotment for HDB Financial Services’ IPO is likely to be completed today, June 30.
  • Grey Market Premium (GMP) indicates a possible 7–8% listing gain.

Key Facts

  • The ₹12,500 crore IPO got subscribed almost 17 times in total.
  • The highest interest was witnessed in the QIB portion at 55 times, followed by NIIs and retail investors.
  • The shares are expected to be listed on July 2, with allotment being credited to demat accounts on or before July 1.

Key Background

HDB Financial Services, one of the top non-banking financial companies (NBFC) and a subsidiary of HDFC Bank, floated one of the largest IPOs of the year with an issue size of ₹12,500 crore. This involved a fresh issue of ₹2,500 crore and an offer-for-sale of ₹10,000 crore. The IPO was met with good demand from institutional as well as non-institutional buyers. The overall subscription was approximately 16.7 times, while QIBs subscribed more than 55 times, NIIs around 10 times, and the retail investor category at around 1.4 times.

The IPO price band was kept between ₹700 and ₹740 for equity share. As per market sentiment, the Grey Market Premium (GMP) for the shares is ranging between ₹57 to ₹60, which means that the listing price may be between ₹797 to ₹800. That would be around 7% to 8% premium over the higher end of the issue price. Whereas GMP provides a glimpse into sentiment in the market, it is unofficial and ought not to be the basis for an investment in isolation.

Finalization of allotments is slated for today, and successful bidders can expect shares to be credited to their demat accounts by July 1. Shares are listed on the NSE and BSE on July 2. Shareholders can view allotment status on official IPO registrar websites or stock exchange websites.

Established in 2007, HDB Financial Services has a product portfolio comprising personal loans, gold loans, consumer durable financing, and others. It also provides BPO activities like collections, back-office solutions, and insurance distribution. As of September 2024, the company had a gross loan book of approximately ₹98,600 crore and Assets Under Management (AUM) of around ₹90,200 crore. It has more than 17.5 million customers in almost 1,170 towns and cities in India.

Funds from the IPO will mainly go towards strengthening Tier-I capital and facilitating future lending operations, maintaining the momentum of the company in the retail finance business.