HDB Financial's initial public offering (IPO) continued to witness tepid investor response in the primary market. The bidding window for the non-banking finance company (NBFC) was opened yesterday, July 25, 2025 (Wednesday). So far, the ₹12,500 crore IPO has been subscribed only 53%, according to BSE data as of 11:20 am.
The portion for foreign institutional investors (FIIs) was subscribed 0.01 times, while the non-institutional investors (NIIs) portion saw a subscription of 1.14 times. The retail individual investors (RIIs) segment was subscribed 0.42 times, however, the employee quota received a robust response with a 2.19 times subscription.
The bidding window will close on June 27, 2025 (Friday) and the tentative day of listing is fixed for July 2, 2025 (Wednesday).
"The IPO's June launch coincides with a goldilocks period for NBFCs – credit growth remains robust at 15%+, asset quality metrics have normalized post-pandemic, and risk appetite is returning to rural markets. However, beneath these favorable conditions lurk structural challenges: rising cost of funds (HDB's NIMs compressed 30 bps in FY24), increasing competition from new-age fintechs, and the perennial volatility of unsecured lending (27% of HDB's portfolio)," said Tarun Singh, founder and MD, Highbrow Securities
The public offering is a combination of a fresh issue worth ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore. The company has fixed a price band between the range of ₹700 and ₹740 per equity share.
"HDFC Bank's decision to monetize part of its 94% stake through a ₹10,000 crore OFS while retaining 74% ownership suggests cautious optimism – they're taking money off the table but maintaining skin in the game," said Singh.
HDB Financial IPO GMP
GMP or grey market premium signals the price level at which the shares of the company trade in the unlisted market before hitting the official bourses.
At 11:50 am, HDB Financial shares were trading at a GMP of ₹51.5, commanding a premium of 6.96% in the grey market, as per InvestorGain.
Motilal Oswal Investment Advisors Ltd., Jefferies India Pvt. Ltd., Morgan Stanley India Company Pvt. Ltd., BNP Paribas, JM Financial Ltd., Bofa Securities India Ltd., Goldman Sachs (India) Securities Pvt. Ltd., HSBC Securities & Capital Markets Pvt Ltd., IIFL Capital Services Ltd., Nomura Financial Advisory and Securities (India) Pvt. Ltd., Nuvama Wealth Management Ltd. and UBS Securities India Pvt. Ltd. are the book running lead managers of the HDB Financial IPO.
