HDB Financial Services IPO Debut: Joins India’s Top NBFCs with Big Listing Day Surprise
HDB Financial Services surprised the Indian stock market on July 2 with a strong listing. It opened at ₹835 on both the NSE and BSE, which was around 13% higher than its issue price of ₹740. With this, it instantly became the eighth largest non-banking financial company (NBFC) in India by market value—around ₹70,000 crore.
HDB Financial Services makes a strong stock market debut with a 13% gain, joining India’s top NBFCs by market value. Read full IPO insights here.
The IPO had gained huge attention during its bidding period from June 25 to June 27. Backed by HDFC Bank, India’s biggest private lender, HDB raised ₹12,500 crore through this IPO. Everyone—from retail investors to big institutions—wanted a piece of this financial giant in the making.
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Why this IPO Was a Big Deal?
This IPO was the largest NBFC public offering India has seen so far. It included both fresh equity and an offer for sale. HDB sold 3.38 crore fresh shares worth ₹2,500 crore and 13.51 crore shares through offer for sale worth ₹10,000 crore.
Twelve big investment banks acted as book runners, making this IPO a high-profile event. The IPO allotment was finalized on June 30, and by July 2, the stock was ready to trade.
Investors were allowed to bid within a price band of ₹700 to ₹740 per share. It listed right at the top end of the band, proving the positive sentiment in the market.
ALSO READ: Surprise IPO Rush: HDB, JSW Cement & More to Hit Market by July!
HDB Now Among Top NBFCs
With this listing, HDB Financial Services has joined the elite club of top NBFCs like Bajaj Finance, Jio Financial Services, and Cholamandalam Investment. Bajaj Finance leads the pack with a market cap of over ₹5.8 lakh crore, but HDB’s ₹70,000 crore market value places it firmly among the major players.
Other well-known NBFCs like Shriram Finance, Muthoot Finance, and Aditya Birla Capital are now direct peers to HDB in terms of size. It’s a major milestone for a company making its stock market debut.
Stock Performance Post Listing
After listing, the stock didn’t move much during the day, but it did close on a positive note. On BSE, it ended at ₹840.90, while on NSE, it closed at ₹840.25. That’s a gain of just under 1% from the opening price, but still a solid start considering the overall market mood.
Investors seem to be holding the stock, expecting more gains in the future. Analysts are also keeping a close watch on how the company performs in the coming quarters.
What Does HDB Financial Services Actually Do?
HDB is more than just a lender. It runs a three-part business:
- Enterprise Lending – Offers loans to small businesses and professionals.
- Asset Finance – Helps fund vehicles and machinery for work.
- Consumer Finance – Provides loans for personal use, like buying a phone or two-wheeler.
Apart from lending, HDB also runs business process outsourcing services. This makes its model wide and well-spread across customer types.
ALSO READ: Surprise IPO Rush: HDB, JSW Cement & More to Hit Market by July!
Strong Financials Backed by Healthy Growth
As of September 30, 2024, HDB’s gross loan book stood at ₹98,620 crore. That’s a growth of over 21% CAGR since FY22. The company reported a net profit of ₹2,460.8 crore in FY24, up from ₹1,620 crore two years ago.
Their return on equity (ROE) stood at 19.55%, while net interest margins (NIMs) remained above 7%. The gross NPA stood at 1.90% and net NPA at just 0.63%, showing strong asset quality. These numbers prove that HDB Financial Services is not only growing fast but also doing it the right way.
What’s Next for HDB Financial Services and HDFC Bank?
There might be one hurdle ahead. As per an RBI draft rule from October 2024, banks and their NBFCs must not overlap in business. If this rule gets final approval, HDFC Bank may have to reduce its stake in HDB to below 20%.
Still, with strong investor interest, a stable stock, and impressive business numbers, HDB Financial Services is expected to remain in focus in the coming months.
Disclaimer: This is not financial or investment advice. Please conduct your own due diligence or seek expert guidance for financial planning.
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