HDB Financial Services IPO booked 37% on Day 1; Should you subscribe? Check latest GMP

HDB Financial Services IPO opened for public subscription on June 25. 

HDB Financial Services initial public offer (IPO) opened for public subscription on Wednesday in the primary market. Earlier, on June 24, the subsidiary of HDFC Bank garnered Rs 3,369 crore from anchor investors, including Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), SBI MF, Norway's Government Pension Fund Global, and Goldman Sachs, among others.

The Rs 12,500-crore initial public offering (IPO) of HDB Financial Services will conclude on June 27. The price band has been set at Rs 700-740 per share for its issue. Further, investors can bid for 20 shares and multiples thereof. At the upper end of the price band, the company is valued at nearly Rs 61,400 crore.

HDB Financial Services IPO opens on June 25: Institutional investors pick Rs 3,369 crore worth shares via anchor book

Retail individual investors (RIIs) category fetched 30 percent subscription, while the quota for non-institutional investors (NIIs) subscribed 76 percent. The initial public offer (IPO) received bids for 4.85 crore shares against 13.04 crore shares on offer, as per data available with the NSE.

HDB Financial Services IPO GMP

According to platforms tracking the grey market activities, the shares of HDB Financial Services are commanding a GMP of about 10 percent in the regulated market. Investorgain quoted a GMP of Rs 71 for the shares of the company, indicating a listing gain of 9.59 percent.

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HDB Financial Services IPO: Should you subscribe?

SBI Securities recommend a subscribe rating to the issue, saying "It offers a diversified portfolio of products through its 3 business verticals. As of FY25, the share of Enterprise Lending stood at 39.3%, the share of Asset Finance stood at 38.0% and the share of Consumer Finance stood at 22.7% of the gross loan book."

Bajaj Broking, noted "Investors with a medium- to long-term outlook may find the issue attractive, provided the company sustains growth while improving operating efficiency and asset quality post-listing.”

Sharekhan, expect healthy listing gains and remain assertive from a medium to long-term perspective.

LKP Securities, said "The company has a diversified liability franchise supported by a strong credit rating of AAA stable by CRISIL and CARE, which is the highest that can be assigned on the credit rating scale for any NBFC in India.”

HDB Financial Services shares will be listed next week on July 2, while the allotment is expected on Monday, June 30 on the official registrar of the company.

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