HDB Financial Services IPO day 3 Live: GMP, subscription status to review. Should you apply for this HDFC Bank arm?

HDB Financial Services IPO: Bidding for the initial public offering (IPO) of HDB Financial Services Limited ends today. So, investors have just one day to apply for the public issue of this HDFC Bank arm. The company has declared the HDB Financial Services IPO price band at ₹700 to ₹740 per equity share. The company, a subsidiary of HDFC Bank Ltd, aims to raise ₹12,500 crore, of which ₹10,000 crore is reserved for OFS and the rest, ₹2,500 crore, is aimed through fresh shares. Looking at the big HDB Financial Services IPO, the HDB Financial Services IPO subscription status suggests the initial public offer has received a decent response from the primary market investors in the first two days of bidding.

However, the grey market sentiment has taken a hit despite the Indian stock market’s continued bull trend for the last three straight sessions. According to market observers, HDB Financial Services shares are available at a premium of ₹50 in the grey market today.

HDB Financial Services IPO GMP today

As mentioned above, HDB Financial Services IPO GMP (Grey Market Premium) today is ₹50, which is ₹25 lower than Thursday’s HDB Financial Services IPO grey market premium of ₹75. They said the secondary market has been in a bull trend for the last three sessions. So, HDB Financial Services IPO GMP going down can be attributed to the weak-looking HDB Financial Services IPO subscription status. However, the HDB Financial Services IPO subscription is quite attractive if we look at the HDB Financial Services IPO size as ₹12,500 crore. They said investors should not be bothered by the dip in HDB Financial Services IPO GMP and look at the strong bull trend in the secondary market before making any final investment decision.

HDB Financial Services IPO subscription status

After the end of bidding on day 2, the public issue had been subscribed 1.16 times, the retail portion of the public issue had been booked 0.64 times, the NII segment had been subscribed 2.29 times, and the QIB portion had been filled 0.90 times.

HDB Financial Services IPO review

Assigning a ‘subscribe’ tag to HDB Financial Services IPO, Rajan Shinde, Research Analyst at Mehta Equities, said, “We believe HDB Financial Services Ltd IPO brings investors an opportunity to invest in one of India’s leading and fastest-growing diversified NBFCs, with a well-balanced loan portfolio across Enterprise Lending, Asset Finance, and Consumer Finance. On valuation parse at the upper price band of ₹740/-, the issue asks for a market cap of ₹61388 cr. Based on FY 2025 earnings and fully diluted post-IPO paid-up capital, the company is asking for a Price-to-book ratio (P/B) of 3.5x, which seems fairly valued, considering its industry average of ~3.5-4x. Given its strong parentage, proven execution across cycles, diversified loan mix, and digital-first approach, we believe HDB Financial Services is well-positioned to benefit from India’s ongoing financial inclusion and expanding retail credit demand. Hence, looking at all attributes, we recommend investors to “SUBSCRIBE” to the HDB Financial Services Ltd IPO for a long-term perspective.”

Advising investors to apply for the initial offer, Yes Securities said, “At the upper end of the IPO Price Band of Rs700-740, HDB is being priced at 3.7x/3.4x trailing PBV and 28x/27x trailing PE on pre/post-money basis. This valuation represents a significant discount to Chola, which trades at 5.7x PBV and 32x PE on a trailing basis. In light of HDB’s sturdy franchise, strong management/promoter, positively changing operating environment and palatable IPO valuation, we recommend subscribing to the issue with a potential of meaningful upside in the next 12m.”

Sharekhan has also assigned a ‘subscribe’ tag to the initial offer, saying, “The company is valued at an FY25 price-to-book ratio of ~3.2x/~3.4x at post-issue capital at the lower price band & upper price band respectively, which is reasonable as compared to its peers considering the growth and return ratio profile. Strong parentage and much smaller size than its core peer (Bajaj Finance) provide a long runway for growth. Additionally, a favourable macro environment will be a tailwind for the sector in the near to medium term. We expect healthy listing gains and remain assertive from a medium to long-term perspective.”

Apart from these, Kunvarji Finstock, Aditya Birla Money, Bajaj Broking, Canara Bank Securities, Centrum Wealth Management, Nirmal Bang, SBI Capital Securities, etc., have also been assigned a ‘subscribe’ tag to the HDB Financial Services IPO.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.