HDB Financial Services, a subsidiary of HDFC Bank, has launched its much-anticipated Initial Public Offering (IPO), which is being hailed as the largest IPO of 2025. The ₹12,500 crore issue opened for public subscription on June 25, 2025, and will close on June 27, 2025. As of Day 2, the IPO has garnered moderate interest, with investors closely watching the Grey Market Premium (GMP) and subscription trends.
IPO Structure and Price Band
The IPO comprises a fresh issue of ₹2,500 crore and an Offer for Sale (OFS) of ₹10,000 crore by HDFC Bank. The price band has been fixed at ₹700 to ₹740 per share, valuing the company at approximately ₹61,400 crore at the upper end. Investors can bid for a minimum of 20 equity shares and in multiples thereafter.
Subscription Status as of Day 2
By the second day of bidding, the IPO was subscribed 1.16 times overall, with the retail portion at 0.45 times, non-institutional investors (NII) at 1.19 times, and qualified institutional buyers (QIBs) at 0.01 times2. The employee and shareholder categories have also seen healthy participation, with the employee quota subscribed 1.77 times.
Grey Market Premium (GMP) Insights
The GMP for HDB Financial Services IPO currently stands at approximately 6.96%, indicating a modest premium over the issue price in the unofficial market. This suggests cautious optimism among investors, with market sentiment influenced by broader economic conditions and the company’s fundamentals.
Anchor Investment and Listing Details
Ahead of the IPO, HDB Financial Services raised ₹3,369 crore from anchor investors, reflecting strong institutional interest. The allotment is expected on June 30, with shares likely to be listed on the BSE and NSE on July 2, 2025.
Conclusion
As the IPO enters its final day, investor interest is expected to pick up, especially from institutional buyers. With its strong parentage, diversified NBFC portfolio, and robust branch network, HDB Financial Services presents a compelling long-term proposition. However, the moderate GMP and early subscription trends suggest that investors are approaching with measured enthusiasm.