HDB Financial Services IPO Opens Today: HDFC Bank Arm Sees Rs 74 GMP, 10% Listing Gain Expected — Should You Apply?

HDB Financial Services IPO Opens Today: HDB Financial Services, a subsidiary of HDFC Bank, has opened its Rs 12,500 crore initial public offering (IPO) today, June 25, 2025. 

The IPO will remain open till June 27 and is expected to be one of the biggest public issues in the NBFC space this year.

IPO Structure & Price Band

The Rs 12,500 crore IPO consists of a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore. The price band is set between Rs 700 and Rs 740 per share. Retail investors can bid for a minimum lot of 20 shares, amounting to an initial investment of Rs 14,000.

Grey Market Premium (GMP) Suggests 10% Listing Gain

As of June 25, the grey market premium (GMP) stood at Rs 74, according to various websites tracking GMP. Based on the upper price band of Rs 740, the expected listing price is around Rs 814 per share, indicating a potential 10% listing gain.

HDB Financial Services: Important Dates

The company is expected to be listed on the BSE and NSE on July 2, with the allotment likely to be finalised by June 30.

Company Snapshot

HDB Financial Services is classified as an upper-layer NBFC by the RBI and ranks as India’s fourth-largest diversified, retail-focused NBFC by gross loan book size. As of March 2025, its AUM stood at Rs 1,073 billion, with a loan book of Rs 1,068 billion.

It operates 1,771 branches across 31 states and union territories and has a customer base of 1.9 crore. Over 73% of its loans are secured, and it mainly caters to low and middle-income households, often serving borrowers with little to no credit history.

The company has a robust internal underwriting and collections team, with over 16,000 employees involved in credit operations.

Also Read: Skipped A Loan EMI? Here's How It Could Impact Your Credit Score and Wal

Broker Recommendation: Subscribe

SBI Securities has given a strong recommendation to subscribe to the IPO at the cut-off price. In its note, it said:

“The company is backed by strong parentage, brand, governance, risk management and a high credit rating. It is one of the largest NBFCs catering to the second-largest customer franchise.”

“We recommend investors SUBSCRIBE to the issue at the cut-off price,” the brokerage added, highlighting the company’s valuations at 3.2x to 3.4x FY25 post-issue book value.

HDB Financial Services IPO: Financials & Growth Outlook

HDB Financial Services has shown strong financial health. Its gross non-performing assets (NPA) are at 2.3%, and net NPA is just 1%, which reflects good asset quality. The company’s borrowing cost is low at 7.9%, thanks to its AAA credit rating and access to diversified funding.

It also has a healthy capital adequacy ratio of 19.22% and a leverage ratio of 5.85x. Backed by HDFC Bank, HDB is well-positioned to grow its loan book while maintaining financial stability and control over credit risk.

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