HDB Financial Services IPO GMP Rises Ahead of Subscription As Investors Eye Stronger Listing Gains

The grey market is buzzing with anticipation ahead of HDB Financial Services’ public market debut, with shares commanding a premium as high as 11% on 24 June. As the public offer opens for bidding from 25 to 27 June, investor sentiment appears strong, pushing the grey market premium (GMP) to ₹80, implying a potential listing price of around ₹820 per share.

GMP often reflects the broader market’s appetite for an IPO, representing the premium at which shares are traded unofficially before they are formally listed on the stock exchanges.

The non-banking financial arm of HDFC Bank, HDB Financial, is launching a mega ₹12,500 crore public issue, with the price band set at ₹700–₹740 per share. At the upper end, the issue pegs the company’s potential market capitalisation at around ₹62,000 crore.

Market analysts have responded favourably to HDB’s valuation. Centrum Broking noted that at ₹740 per share, the IPO is valued at less than 3x its FY26 price-to-adjusted book value (P/ABV)—a meaningful discount compared to peers like Bajaj Finance and Cholamandalam Investment, though reflective of its relatively lower return ratios and growth trajectory.

Analysts at SBI Securities echoed a bullish sentiment, citing the company’s strong parentage, robust brand value, effective governance, sound risk management practices, and high credit rating. “HDB is among the largest NBFCs in India, serving one of the widest customer franchises. It is well-positioned for sustained growth and is expected to benefit from improving asset quality,” the brokerage stated.

The IPO is set to be India’s largest public issue of 2025 so far and the biggest since Hyundai Motor India’s ₹27,000 crore listing last year. The offer includes a fresh equity issue of ₹2,500 crore and an offer-for-sale (OFS) of ₹10,000 crore by HDFC Bank.

Arihant Capital Markets recommends subscribing to the issue with a long-term view, pointing to HDB’s strong strategic positioning amid India’s ongoing credit expansion. Systemic credit in India is projected to grow at a 13–15% CAGR, reaching ₹297 lakh crore by FY28. The firm’s digital-first approach, with 95% of customers onboarded digitally, is well-aligned with India’s digital payments ecosystem, which is growing at a 50% CAGR.

With experience across multiple credit cycles, HDB is actively focusing on the fast-growing Middle India segment and the under-served rural economy, which contributes 47% to GDP yet receives just 9% of total banking credit.