HDB Financial Services IPO: Market Debut on July 2 Expected to Deliver Up to 10% Listing Gains

HDB Financial Services, the non-banking finance subsidiary of HDFC Bank, is set to make its stock market debut on July 2 with strong anticipation of listing gains. Backed by robust institutional interest and one of the highest subscription rates for large IPOs in recent years, the stock is expected to list at a premium of 8–10% over its issue price. Analysts are projecting that the stock may open around ₹665–₹675, rewarding investors who participated in India’s second-largest IPO in three years. With solid fundamentals, a wide distribution network, and steady asset quality, HDB Financial’s listing is expected to mark a significant event in the NBFC space.

Highlights

• HDB Financial shares to debut on July 2 with 8–10% expected gains.

• IPO subscribed 16.69 times; strong institutional and retail demand.

• The offering is India’s second-largest IPO since Hyundai Motor India.

• Backed by HDFC Bank, the company holds strategic growth potential.

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Diversified Lending Portfolio and Pan-India Footprint Fuel Long-Term Confidence

HDB Financial Services has positioned itself as a full-spectrum NBFC with a diversified loan portfolio across enterprise, consumer, and asset-backed lending. Operating through a vast network of 1,771 branches and supported by over 60,000 employees, the company serves both urban and semi-urban segments. According to disclosures, its assets under management (AUM) and profit after tax (PAT) grew at a compound annual growth rate of 24% and 5.4%, respectively, between FY23 and FY25. Despite the size and complexity of its portfolio, the gross NPA ratio has remained stable around 2.3%—a testament to prudent underwriting. Analysts believe this granularity and broad-based presence offer insulation against sectoral downturns, while keeping the door open for growth in underpenetrated markets.

Highlights

• NBFC operates across enterprise, consumer, and asset-backed lending.

• AUM and PAT grew at a CAGR of 24% and 5.4% between FY23–FY25.

• Gross NPA remains steady at ~2.3%, reflecting asset quality resilience.

• Pan-India footprint with 1,771 branches and 60,000+ employees.

Analysts See Compelling Valuation; Listing Strategy Encourages Holding for Long Term

Several analysts recommend holding HDB Financial shares for the medium to long term post-listing, given the stock’s reasonable valuation and HDFC Bank’s strategic support. At the upper end of the IPO price band, the FY25 estimated price-to-book ratio stands at 3.7x, placing it among reasonably valued NBFCs with national scale. Narendra Solanki of Anand Rathi notes the company’s ₹61,387.94 crore post-issue market cap makes it one of the top-tier NBFCs with solid granularity and scale. Mehta Equities’ Prashanth Tapse emphasized that the IPO received bids worth over ₹1.61 lakh crore, making it the second most subscribed mega issue after Tata Technologies. Investors are advised to use any early volatility as an opportunity to accumulate shares for long-term gains, especially amid India’s ongoing credit upcycle.

Highlights

• FY25 P/B valuation at 3.7x; post-issue market cap at ₹61,387.94 crore.

• Analysts recommend long-term holding or buying on dips post-listing.

• IPO garnered ₹1.61 lakh crore in bids, reflecting strong demand.

• Strategic support from HDFC Bank offers credibility and growth buffer.