Adobe Stock
HDB Financial Services’ IPO has entered Day 2 with a fair bit of suspense. The Rs 12,500 crore issue — one of 2025’s biggest NBFC listings — is seeing decent action from retail and non-institutional investors.
But the big boys — institutional players — seem to be in no rush. With the grey market premium cooling to around Rs 52, the mood feels cautious, not euphoric. So, is this a steady climb or a sign of over-valuation?
What’s happening?
HDB’s IPO, priced between Rs 700 and Rs 740 a share, has so far seen about 51 per cent overall subscription by Day 2. Here’s the split:
- Retail investors: 0.40 times subscribed
- Non-institutional investors (NIIs): 1.06 times subscribed
- QIBs (Qualified Institutional Buyers): 0.01 times subscribed
Interestingly, the employee quota is nearly 2.12 times subscribed, demonstrating a vote of confidence from insiders. But what’s keeping institutions away for now? Valuation concerns, possibly.
About the company
HDB Financial, a subsidiary of HDFC Bank, is no newcomer. Set up in 2007, it’s grown into a major non-bank lender with over 1,770 branches, mainly in semi-urban and rural pockets. Its focus areas: enterprise loans, asset finance, and consumer lending.
What’s driving the mixed mood
- Valuation worry: HDB’s asking price translates into a premium P/E and P/B compared to many peers. The IPO price is a sharp reset from its earlier unlisted market levels.
- Grey market signal: The GMP, once at 10 per cent over the issue price, is now closer to 7 per cent, suggesting muted listing gains.
- Anchor comfort versus QIB caution: Big anchors like LIC, BlackRock and Norway’s SWF have backed the issue. But fresh QIB bids are still trickling in.
What it means for investors
If you’re looking for quick listing gains, this one may not be the jackpot, going by current GMP. But HDB brings strong parentage, decent asset quality, and a large semi-urban footprint. The premium valuation means you need to believe in the company’s long-term growth story, not just the IPO hype.
Serious about wealth? So are we.
Join thousands of smart investors who rely on Value Research Stock Advisor for expert-picked stocks, time-tested strategies and long-term discipline.
Stop guessing. Start growing. Check it out now: Value Research Stock Advisor.
Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
