HDB Financial Services, the NBFC arm of HDFC Bank, is gearing up to hit the stock market on June 25. The company plans to raise ₹12,500 crore through a fresh issue of ₹2,500 crore and an offer for sale of ₹10,000 crore by HDFC Bank, which holds 94% stake. The IPO price band ranges from ₹700 to ₹740 per shares. The issue includes a mix of a fresh issue and offer for sale, making it a significant event in the upcoming IPO calendar for 2025. The platform for applying for the IPO has also evolved, with HDFC Sky offering a One-Click IPO feature, simplifying the process for investors.
HDB IPO: What Does A 6.35% Grey Market Premium Tell Us?
Shares of HDB Financial Services are currently trading at a 6.35% premium, ₹47-₹48 above the IPO issue price, in the grey market. This strong premium signals robust investor interest and positive market sentiment ahead of the company’s public listing. The grey market buzz reflects optimism about HDB Financial’s growth potential and solid backing by HDFC Bank. Have you checked the latest grey market activity for this IPO? Such a premium often influences investor decisions—does this rising enthusiasm encourage you to consider investing in HDB Financial Services when the IPO opens?
Simplified Application Process Via HDFC Sky’s One-Click IPO Feature
Applying for the HDB Financial IPO has never been easier, thanks to the One-Click IPO feature offered by HDFC Sky. Investors can seamlessly apply through the mobile or desktop platform by following a few simple steps:
- Log into your HDFC Sky account on mobile or desktop.
- Open the “Indian Stocks” tab and navigate to the “IPO” section.
- Find “HDB Financial Services IPO” and click “Apply Now.”
- Enter bid details such as lot quantity, price, and investor category.
- Choose UPI as your payment method.
- Approve the UPI mandate in your app.
- Submit the application and receive a confirmation notification.
This process eliminates paperwork, offering speed and convenience for users applying through either the mobile app or desktop interface.
Issue Size And Structure: Breakdown Of The HDB Financial IPO
The HDB Financial IPO is a ₹12,500 crore book-building issue, structured into two parts: ₹2,500 crore worth of a fresh issue (3.38 crore shares) and ₹10,000 crore worth of offer for sale (13.51 crore shares). The price band for the shares has been set between ₹700 and ₹740 each. Retail investors can bid in lots of 20 shares, with the minimum application amount at ₹14,800 at the cut-off price. The tentative listing date on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is scheduled for July 2, 2025.
Allocations And Shareholding Structure
The IPO includes specific allocations for different investor categories. Qualified Institutional Buyers (QIBs) will be allotted 44.92% of the total issue, Non-Institutional Investors (NIIs) will receive 13.48%, and retail investors will be allocated 31.44%. There are also separate provisions for employees and existing shareholders. The allocation details and the overall structure are designed to ensure a balanced distribution among various investor types.
Detailed Breakdown Of Lot Sizes For Different Investor Categories
The IPO offers different lot sizes based on investor categories, as outlined below:
- Retail Investors: Minimum bid of 1 lot (20 shares) = ₹14,800; maximum bid of 13 lots (260 shares) = ₹1,92,400.
- Small Non-Institutional Investors (sNII): Minimum bid of 14 lots (280 shares) = ₹2,07,200; maximum bid of 67 lots (1,340 shares) = ₹9,91,600.
- Big Non-Institutional Investors (bNII): Minimum bid of 68 lots (1,360 shares) = ₹10,06,400.
The IPO’s allotment process will conclude by June 30, 2025, with share credits and refunds scheduled for July 1, 2025. Investors should confirm their UPI mandate by 5 PM on the final day of bidding.
Company Financials And Market Position
HDB Financial Services operates an extensive network of over 1,700 branches across India, offering diverse personal and business loan products. In the fiscal year 2025, the company reported a net profit of ₹2,176 crore, down from ₹2,461 crore in FY24. The gross non-performing assets (NPAs) increased to 2.26% from 1.9%, indicating some asset quality challenges. The company continues to focus on growth despite a competitive and evolving NBFC sector. Investors should consider the company’s financial performance, asset quality, and growth prospects carefully before subscribing.
Analyst Views And Market Outlook
Market experts have noted that while the IPO enjoys strong demand in the grey market, valuations may seem high compared to peers such as Bajaj Finance and Shriram Finance. These competitors typically showcase higher returns on equity and stronger growth rates. However, the current grey market premium signals optimism about HDB Financial’s listing and future prospects. Investors are advised to weigh these factors carefully within the context of a challenging macroeconomic environment.
