HDB Financial Services, a leading non-banking financial company (NBFC) and subsidiary of HDFC Bank, is set to make its stock market debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday, July 2, following an overwhelming response to its initial public offering (IPO). The IPO was subscribed 16.69 times, buoyed by strong demand from institutional and retail investors.
The public issue was open between June 25 and June 27 and witnessed full subscription by the second day itself, underscoring investor confidence in the company’s fundamentals and growth outlook.
Listing Day Expectations
Market analysts anticipate the stock to list with gains in the range of 8–10%. Mahesh M. Ojha, AVP – Research & Business Development at Hensex Securities Pvt Ltd, said, “HDB Financial shares are likely to deliver 8-9% listing gains. Allotted investors may hold the stock for a medium to long-term horizon.”
Ojha also highlighted the company’s stable asset quality, noting that gross non-performing assets (NPAs) averaged around 2.3% between FY23 and FY25. During the same period, the company achieved a compound annual growth rate (CAGR) of 24% in assets under management (AUM) and 5.4% in profit after tax (PAT).
Strong Fundamentals and Strategic Positioning
The company operates with a diversified loan portfolio across enterprise, consumer, and asset financing segments and has a widespread presence with 1,771 branches and over 60,000 employees nationwide.
Prashanth Tapse, Research Analyst at Mehta Equities, pointed out that the IPO received bids worth over ₹1.61 lakh crore, making it the second-most subscribed issue among IPOs exceeding ₹10,000 crore—only behind Tata Technologies.
“HDB’s reasonable valuation, diversified product mix, and focus on SME lending make it a compelling long-term investment,” Tapse said. He also emphasized the company’s strategic backing by HDFC Bank and its potential in underpenetrated retail and SME credit markets.
Post-Listing Strategy and Valuation
Tapse advised investors who missed the allotment to consider entering on dips if the stock faces short-term volatility. “HDB Financial is well-placed for a structural credit upcycle in India and is suitable for investors with a 3–5 year view,” he added.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, echoed similar sentiments. He noted that at the upper price band, the company’s FY25 price-to-book (P/B) ratio stands at 3.7x, with a post-issue market capitalization of ₹61,387.94 crore.
“Backed by the strong parentage of HDFC Bank, the company offers a well-diversified product portfolio with robust granularity, scale, and sound lending quality,” Solanki said, recommending a long-term hold strategy.
About the IPO
HDFC Bank currently holds a 94.36% stake in HDB Financial Services. The IPO is the second-largest in India in the last three years, trailing only Hyundai Motor India’s ₹27,000 crore public issue.
With strong institutional backing, a wide market footprint, and solid financial performance, HDB Financial’s listing is being closely watched as a potential bellwether for the NBFC sector amid India’s ongoing credit growth cycle.
