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HDB Financial Services HDFC Bank's NBFC arm launched a landmark INR 12,500 crore IPO with a strong anchor book subscription of INR 3,369 crore at the top of the price band. Public interest surged, yet only about 1% was subscribed on day one, while the GMP hit 10%, reflecting strong market optimism. The company's robust financial base, vast branch network beyond metro areas, and strategic pricing referencing peer valuations underpin the IPO's broad appeal.
HDB Financial Services, the non-banking finance arm of HDFC Bank, kicked off its public offering this week with a price band set at INR 700-740 per share. Anchor investors committed INR 3,369 crore (approximately USD 392 million) by subscribing at the upper end of the band, cementing it as India's largest-ever IPO from a non-bank lender. Key investors included BlackRock, LIC, and Norway's sovereign wealth fund, while domestic mutual funds made up around 43% of the anchor book. Advertisement
On day one of public subscription, around 1% of shares had been booked, yet the grey market premium (GMP) stood at a healthy 10%, indicating robust investor appetite. Previously, informal GMP values fluctuated between INR 46 and INR 93 this past week, reflecting strong pre-launch momentum . Notably, bankers emphasized that the IPO pricing was driven by core fundamentals and roadshow interactions, not by grey market levels.
Founded in 2007, HDB operates across enterprise, asset, and consumer finance, maintaining an extensive footprint with over 1,770 branches primarily outside tier 1 cities. As of March, the company reported assets totaling INR 108,663 crore and a net worth of INR 14,936 crore. For the fiscal year ending March, its revenues grew by 15%, though net profit eased by 12%, reflecting increased interest costs . At the upper price band, the post-IPO P/E ratio stands near 28x, closely mirroring industry peers.
The IPO spans fresh issuance of INR 2,500 crore alongside INR 10,000 crore in offer-for-sale shares, reserving 10% for HDFC Bank shareholders and allotting 35% to retail, 15% to HNIs, and roughly 45% to QIBs. Investors can bid through ASBA or UPI-enabled broker platforms. Following subscription closure later this week, the allotment is expected soon, with listing anticipated shortly thereafter.
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