HDB Financial Services IPO: Day 2 Kicks Off with Moderate Subscription; GMP Hints at Listing Gains

The highly anticipated initial public offering (IPO) of HDB Financial Services, a prominent non-banking financial company (NBFC) and subsidiary of HDFC Bank, entered its second day of bidding today, June 26, 2025. The mega Rs 12,500-crore public issue, which opened yesterday, June 25, has already garnered significant attention, with early subscription figures showing a steady start.

The IPO, a book-built issue, comprises a fresh issue of equity shares valued at Rs 2,500 crore and a substantial offer-for-sale (OFS) component of Rs 10,000 crore. Bidding for this financial services giant will continue until Friday, June 27, 2025.

Anchor Investors Pave the Way

Ahead of the public subscription, HDB Financial Services successfully raised a significant Rs 3,369 crore from 141 anchor investors. These institutional investors were allocated over 4.55 crore equity shares at Rs 740 each, which is the upper limit of the IPO's price band. The diversified group of anchor investors includes leading domestic mutual funds, insurance firms, and prominent foreign institutions, underscoring confidence in the company's prospects.

Day 1 Subscription Snapshot

As of the close of Day 1, the overall public issue saw a 37% subscription rate, with total bids received for 4,86,40,680 equity shares against 13,04,42,855 shares on offer.

Non-Institutional Investors (NIIs) demonstrated the strongest interest, with their segment subscribed 76%. They placed bids for 1,83,65,840 shares out of the 2,40,64,286 shares reserved for them.

Retail investors followed suit, subscribing to 30% of their allocated portion, bidding for 1,69,88,080 shares out of the 5,61,50,000 shares available in the retail segment.

Grey Market Premium (GMP) Signals Potential Listing Gains

Investors are keenly watching the Grey Market Premium (GMP) to gauge potential listing gains. As of June 25, 2025, 11:29 PM, the latest GMP for HDB Financial Services IPO stands at Rs 50.5, according to investorgain.com. With the IPO price band capped at Rs 740.00, the estimated listing price is projected to be around Rs 790.5 (cap price + current GMP). This suggests an expected gain of approximately 6.82% per share upon listing, offering a hopeful outlook for investors.

Listing Date Confirmed: July 2

HDB Financial Services shares are tentatively scheduled to make their debut on both the BSE and NSE on July 2, 2025.

A Look at HDB Financial Services' Footprint and Financials

HDB Financial Services boasts an extensive network across India. As of March 2025, the NBFC operates over 1,771 physical branches spread across more than 1,170 towns in 31 states and union territories, with plans for further expansion of its distribution footprint.

Financially, the company has shown a mixed but robust performance. In FY23, HDB Financial Services reported a net profit of Rs 1,959.35 crore and revenue of Rs 12,402.88 crore.

For the more recent FY25, the company's financials indicate:

♦ Interest income saw a 24% year-on-year (YoY) increase, reaching Rs 13,835.79 crore.

♦ Total expenses rose by 23% to Rs 13,372.48 crore.

♦ However, according to the Red Herring Prospectus (RHP), the profit after tax (PAT) for FY25 saw an 11.57% year-on-year decline, falling to Rs 2,175.92 crore from Rs 2,460.84 crore in FY24.

♦ Despite the drop in net profit, the company’s revenue from operations rose by 15%, reaching Rs 16,300.28 crore in FY25, up from Rs 14,171.12 crore in FY24.

Future Goals and Strategic Vision

Looking ahead, HDB Financial Services aims to diversify its funding sources by expanding its lender base, with the objective of optimizing its leverage ratio and reducing the average cost of borrowings. As it scales its customer base, the company remains dedicated to fortifying its comprehensive risk management framework to maintain superior credit quality. Additionally, attracting, developing, and retaining skilled talent will be a key focus.

The Powerhouse Behind the IPO

A consortium of leading financial institutions is serving as the book-running lead managers for the HDB Financial IPO. These include JM Financial Limited, BNP Paribas, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities & Capital Markets Pvt Ltd, IIFL Capital Services Limited, Jefferies India Private Limited, Morgan Stanley India Company Pvt Ltd, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Limited, and UBS Securities India Private Limited. MUFG Intime India Private Limited (Link Intime) is the registrar to the issue.

As Day 2 progresses, all eyes will be on the subscription figures and the evolving GMP, offering further clues to the market's reception of this significant IPO.