Synopsis : HDB Financial Services made a strong stock market debut, listing at a 13% premium over its IPO price, signalling robust investor confidence despite tepid retail participation. The Rs 12,500 crore IPO, the largest by a non-banking entity in India, saw strong demand from institutional investors, indicating sustained appetite for quality NBFC plays.
HDB Financial Services’ shares opened at Rs 835 on the NSE and BSE, a 13% premium over its issue price of Rs 740 per share, marking a successful debut for the non-banking financial company. The IPO, which closed on June 27, had a price band of Rs 700–740 per share and turned out to be India’s largest public issue by a non-banking entity, aggregating Rs 12,500 crore, including a fresh issue worth Rs 2,500 crore and an offer for sale of Rs 10,000 crore by HDFC Bank.
The IPO witnessed robust overall subscription at 16.69 times, with institutional investor enthusiasm leading the charge. The qualified institutional buyers (QIB) portion was subscribed 55.47 times, while the non-institutional investors (NII) portion saw a 9.99x subscription. Retail participation, however, remained muted with 1.41x subscription, reflecting cautious optimism in the segment. The employee and shareholder categories were subscribed 5.72x and 4.26x, respectively.
Ahead of the IPO, HDB Financial Services raised Rs 3,369 crore from anchor investors, including LIC, BlackRock, Goldman Sachs Funds, and top domestic mutual funds like ICICI Prudential MF and Axis MF, demonstrating high institutional faith in the NBFC’s growth trajectory.
Following the listing, HDFC Bank’s holding in HDB Financial will reduce to 75% from 94%, allowing for a diversified ownership base while ensuring the parent retains strategic control. Notably, this IPO marks the country’s largest since Hyundai Motor India’s Rs 27,870-crore issue last year, signalling a continued recovery in India’s primary markets and healthy institutional appetite for quality financial sector plays.
The successful debut of HDB Financial Services underscores the resilience of India’s NBFC sector amidst evolving market conditions, with the listing premium reflecting investor optimism around its growth prospects under the HDFC umbrella.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
