HDB Financial Services IPO GMP Indicates 7% Listing Gain Ahead Of June 25 Launch — Check Key Details

HDB Financial Services Ltd. is all set to launch its initial public offering (IPO) to raise Rs 12,500 crore from the primary market this week.

It is a Non-Banking Financial Company (NBFC) with CARE AAA and CRISIL AAA ratings for its long-term debt and banking facilities. Largest private lender HDFC Bank, which holds nearly 95% stake in HBD Financial Services, will dilute its shareholding to nearly 74% through the initial public offering.

Below, you can find the important details about the mainboard IPO, including the latest grey market premium (GMP) and price band. 

The grey market premium (GMP) for the HDB Financial Services IPO stood at Rs 53 apiece at 11:30 a.m. on June 23, as per InvestorGain. The latest GMP indicates a listing price of Rs 793 per share, at a premium of 7.16% apiece compared to the upper limit of the IPO price band.

Note: GMP does not represent official data and is based on speculation.

HDB Financial Services IPO is a book-building issue worth Rs 12,500 crore. The mainboard IPO comprises an offer-for-sale (OFS) of 13.51 crore shares, aggregating to Rs 10,000 crore, and a fresh issue of 3.38 crore shares, amounting to Rs 2,500 crore.

The price band for the IPO has been fixed between Rs 700 and Rs 740 per share. 

Retail investors can invest in the IPO by bidding for a single lot size of 20 shares. This will require an investment of Rs 14,800. Small Non-Institutional Investors have to bid for 14 lots comprising 280 shares, amounting to an investment of Rs 2,07,200. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots, consisting of 1,360 shares. It will require a minimum investment of Rs 10,06,400.

Investors can bid for shares in the IPO from June 25 to June 27. Share allotment is proposed to be finalised on June 30. The successful bidders will receive the shares in their Demat accounts on July 1, while the non-allottees will also receive the refunds on the same day. 

Shares of HDB Financial Services are scheduled to be listed on NSE and BSE on July 2. 

The NBFC has reserved 44.92% of the shares for the Qualified Institutional Buyers (QIBs). Non-Institutional Investors will be allocated 13.48% of the net issue. For retail investors, 31.44% of the net issue will be allocated. The shareholders' quota stands at 10% of the net offer size.  

BNP Paribas, JM Financial Ltd., Bofa Securities India Ltd., Goldman Sachs (India) Securities Pvt., HSBC Securities and Capital Markets Pvt., IIFL Capital Services Ltd., Jefferies India Pvt., Morgan Stanley India Company Pvt., Motilal Oswal Investment Advisors Ltd., Nomura Financial Advisory And Securities (India) Pvt., Nuvama Wealth Management Ltd., UBS Securities India Pvt. are the book running lead managers of the HDB Financial IPO.

MUFG Intime India Pvt. is the registrar for the issue.

HDB Financial Services is the NBFC arm of HDFC Bank. The NBFC’s primary operations include lending and business process outsourcing (BPO) services. It was incorporated in 2007.

Use Of Proceeds

The company will use proceeds from the IPO to meet its capital requirements in the future. 

Financials

The NBFC reported an 11.6% year-on-year (YoY) rise in profit after tax to Rs 2,175.92 crore in FY25 from Rs 2,460.84 crore in FY24. Total income increased 15% YoY to Rs 16,300.28 crore in FY25 from Rs 14,171.12 crore in FY24. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.