HDB Financial Services IPO Day 3: Strong QIB Demand Powers Final Day Surge – Subscription Status, GMP, and Listing Expectation
On Day 3 the issue was oversubscribed with QIBs bidding 49.81 times their quota Non Institutional Investors followed with a subscription of 9.88 times while Retail Investors managed 1.32 times subscription This signals that while retail interest was moderate institutional investors remain strongly optimistic about the future of HDB Financial Services
As of 1.30 pm on the last day the data was already reflecting a healthy demand with QIBs at 9.03 times NIIs at 7.04 times and Retail at 1.05 times The Employee Reserved quota was subscribed 4.39 times while the Shareholder Reservation portion was subscribed 3.18 times. The total overall subscription at that point stood at 4.42 times indicating the momentum that continued into the closing hours
Institutional Investors Lead the Way
It is evident that institutional players have shown strong faith in the fundamentals and future growth of HDB Financial Services The 49.81 times subscription in the QIB category by the close of bidding highlights how fund managers and large institutions view the company as a promising bet in the NBFC space
Such overwhelming interest from institutions usually acts as a strong signal to retail and HNI investors about the potential of a company Historically IPOs with strong QIB participation tend to perform well on listing and in the medium term
Moderate Retail Participation
Retail participation has been moderate with just 1.32 times subscription This reflects a cautious approach from individual investors possibly due to the higher price band of the IPO and the uncertainty in broader markets However the backing from institutional players might lead to a spike in retail interest post-listing if the stock performs well
Analysts Remain Bullish
Leading research houses like Mirae Asset Sharekhan and Deven Choksey Research have expressed a positive outlook on the HDB Financial IPO While Mirae Asset Sharekhan has not assigned a formal rating it noted that the valuations are reasonable given the growth trajectory and return ratios The research note values the company at a price to book ratio of 3.2x to 3.4x depending on the price band
They believe that the company backed by the strong parentage of HDFC Bank is well positioned for long term growth. Compared to its peer Bajaj Finance HDB Financial Services is smaller in size and hence has a larger runway for expansion The NBFC sector itself is expected to benefit from improving macroeconomic factors like lower inflation rising consumption and strong urban and rural credit demand
Deven Choksey Research has gone a step further and issued a Subscribe rating to the IPO They highlighted the attractive pricing robust business fundamentals and future growth potential as reasons for their recommendation They expect AUM and disbursement to grow strongly in FY26 driven by policy support and economic tailwinds
Grey Market Premium Indicates Decent Listing Gains
According to data from Investorgain.com the grey market premium for HDB Financial IPO stood at Rs 65 on June 27
This indicates that the IPO could list at around Rs 805 which is 8.78 percent higher than the upper price band of Rs 740
While GMP is not an official measure and often volatile it does serve as an early indicator of market sentiment A GMP of this level indicates investor confidence and expectation of listing gains For investors looking for listing pop the current GMP suggests a healthy return in the short term
Timeline for Listing and Allotment
Now that the IPO subscription has ended investors are eagerly waiting for the allotment status to be announced Based on the general IPO timeline the allotment is expected to be finalized within 3 to 4 working days from the closing date
Here’s a tentative timeline for the HDB Financial IPO
-
IPO Close Date June 27 2025
-
Basis of Allotment Expected around July 2 2025
-
Refunds Initiation July 3 2025
-
Demat Credit July 4 2025
-
Listing on Stock Exchanges Tentatively July 5 2025
Investors will be able to check their allotment status on the registrar’s website once the basis of allotment is finalized Those who do not receive allotment will have their application amount refunded as per SEBI norms
What Makes HDB Financial IPO Attractive
Several factors are working in favor of HDB Financial Services which is why analysts and institutional investors are betting big on it. First the company’s association with HDFC Bank gives it strong credibility and operational backing This parentage allows HDB to enjoy brand trust access to resources and governance frameworks that newer NBFCs may lack
Second the company operates in a high growth segment of the lending market focusing on personal loans business loans and vehicle loans across urban and semi urban markets Its diversified lending model allows it to manage risks better while also capitalizing on emerging demand trends
Third the financials of the company are healthy with a steady increase in AUM improvement in asset quality and rising profitability The company has maintained a disciplined approach to lending which reflects in its relatively lower NPAs compared to industry averages
Lastly the broader sectoral trends favor NBFCs especially those with strong digital presence distribution network and diversified loan books As consumption demand rises across India and rural incomes improve NBFCs like HDB Financial are well placed to capture the next phase of credit growth
Final Thoughts
The strong institutional response to the HDB Financial Services IPO is a clear vote of confidence in the company’s business model and future prospects While retail investors were a bit cautious the overall sentiment in the market remains positive
Analysts believe that the IPO is fairly priced and offers both listing gains and long term wealth creation opportunity The expected listing premium as per GMP data further boosts investor confidence
For investors who missed out on applying or did not get an allotment the stock may be worth watching post listing for possible entry based on valuation and performance trends. Given the strong backing solid fundamentals and optimistic outlook from experts HDB Financial Services looks set for a positive debut on the exchanges