The biggest NBFC IPO, HDB Financial Services, made a strong debut on BSE and NSE, listing at nearly a 13% premium from its issue price. This makes HDB among the best performers in large-sized IPOs post-COVID. According to experts, HDB Financial Services offers a value-driven opportunity for investors.
"The 13% listing premium strikes a measured note, respectable without being euphoric, much like HDB Financial itself. The market appears to have carefully weighed its dual proposition, the stability of HDFC lineage against the challenges of a maturing NBFC sector," said Tarun Singh, MD and Founder, Highbrow Securities.
HDB Financial Services Share Price BSE:
On BSE, the stock is listed at Rs 835 apiece, which is 12.84% premium from its IPO issue price of Rs 740. The IPO is trading under 'B' and has a settlement type of 'T+1' at BSE.
At the current market price, the NBFC's market valuation is at Rs 69,662.87 crore.
The stock's 52-week high and low have emerged at Rs 845.75 apiece and Rs 834.40 apiece respectively. While HDB is going to have 20% circuit limits at Rs 1,001.95 as the upper limit and Rs 668 as the lower limit currently.
At the time of writing, HDB's share price traded at Rs 837.65 apiece, up by 13.20% from its IPO price, but marginally up from its listing price.
Singh added, "This outcome validates institutional confidence in HDB's pan-India distribution and RBI-compliant structure, while simultaneously acknowledging retail investors' prudent hesitation at current valuations. The moderate premium suggests the street views this as a steady compounder rather than a high-growth story a fair assessment given its 14% RoE and diversified book."
HDB Financial Services Share Price NSE:
Here as well, HDB listed at a 12.83% premium to Rs 835 apiece. The stock's 52-week high and low are at Rs 849.85 and Rs 835 respectively.
At the time of writing, HDB performed at Rs 840 apiece on NSE, up by 13.5% from its IPO price, but also up by 0.6% from its opening price. Its current market cap is at Rs 69,683.61 crore.
Should You Invest In HDB IPO?
"We believe the robust response signals market confidence in HDB's business model, parentage (as an HDFC group company), and long-term growth potential in the NBFC space. If the listing meets expectations, it would reaffirm investor appetite for high-quality financial services plays, especially those backed by trusted legacy institutions," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Despite broader market uncertainties driven by geopolitical tensions, the strong institutional participation underscores confidence in HDB's solid fundamentals and long-term growth potential. This IPO sets a strong precedent, reinforcing the company's positioning as a key NBFC player under the HDFC group umbrella.
That being said, HDB is a well-diversified product portfolio across Retail lending, Asset financing and Enterprise finance: loans for SMEs. Also, the expert predicts the company's strategic positioning to benefit from the liquidity push from the RBI, especially with a high focus on SME NBFC growth.
Given the strong subscription momentum and prevailing bullish sentiment in the market, Tapse said, "We recommend holding the stock for the long term, as HDB Financial Services is strategically positioned to benefit from India's structural credit growth, especially within the retail and SME financing segments."
He added, "Those who did not receive any allotment may consider accumulating on any post-listing corrections, particularly during short-term volatility triggered by broader market movements. As we see HDB Financial Services offers a value-driven opportunity with both defensive and growth characteristics, best suitable for investors with a 3-5 year investment horizon."
Meanwhile, HDB has received its first brokerage coverage as well. Emkay Global has initiated coverage with a BUY rating for a target price of Rs 900.
According to Emkay, HDB has the right ingredients, packed with better external and internal strength, and clear idea with impressive execution. The brokerage predicts HDB's AUM CAGR at 20% for FY25-28.
Moving forward, Singh added, "HDB's ability to translate its parentage into consistent returns will determine whether today's listing proves to be a starting point or a peak. For now, it stands as a thoughtful addition to India's financial services landscape neither revolutionary nor disappointing, but importantly, credible".
The IPO opened on June 25 and closed on June 27. The price band was fixed at Rs 700 to Rs 740 per share. On the final day of subscription, HDB Financial Services received bids of 16.69x, with strong buying from qualified institutional buyers (QIBs) whose portion was oversubscribed by 55.47 times.
HDB Financial Services (HDBFS) is a leading Non-Banking Financial Company (NBFC) that caters to the growing needs of an Aspirational India, serving both Individual & Business Clients.
Incorporated in 2007, HDB is a well-established business with strong capitalization. HDBFS is accredited with CARE AAA & CRISIL AAA ratings for its long-term debt & Bank facilities and an A1+ rating for its short-term debt & commercial papers, making it a strong and reliable financial institution.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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