HDB Financial IPO Closes Strong as QIBs Join the Party on Final Day

Image Source: Business Today

HDB Financial Services’ ₹12,500 crore IPO wrapped up on a high note Friday, with the Qualified Institutional Buyers (QIB) portion fully subscribed by the end of bidding. The issue, which opened on June 25, had already seen robust interest from non-institutional investors and employees, but QIB participation surged on Day 3, sealing the deal.

Key highlights:

- Total issue size: ₹12,500 crore (₹2,500 crore fresh issue + ₹10,000 crore OFS by HDFC Bank)

- Price band: ₹700–₹740 per share

- QIB portion: Fully subscribed on final day

- Overall subscription: 1.16x by Day 2

- Anchor investors: ₹3,369 crore raised from LIC, BlackRock, Goldman Sachs, and others

The IPO is India’s largest NBFC public issue in recent years and the fifth biggest overall in the past two decades. HDFC Bank, which currently holds over 94% in HDB Financial, will see its stake drop to 75% post-listing.

Retail and shareholder categories saw moderate interest, while the employee quota was oversubscribed nearly 3x. The grey market premium (GMP) hovered around ₹50–₹55, indicating a listing pop of 6–8% over the upper price band.

Outlook: With strong institutional backing and a solid anchor book, HDB Financial is expected to make a healthy debut on July 2. Analysts remain cautiously optimistic, citing the company’s diversified lending model and HDFC lineage, though valuations are seen as fully priced.

Sources: Financial Express, The Hindu BusinessLine, Moneycontrol