HDB Financial IPO Off to a Slow Start with 0.36x Subscription on Day 1; Employee Segment Fully Booked
By Ankur Chandra | Updated at: Jan 16, 2026 03:40 PM IST
Mumbai, 25 June 2025: The much-awaited ₹12,500 crore initial public offering (IPO) of HDB Financial Services Ltd witnessed a slow start on its first day, attracting 0.36 times overall subscription by 4:39 p.m., based on data from the BSE.
The public issue includes a ₹10,000 crore Offer for Sale (OFS) by parent company HDFC Bank, along with a ₹2,500 crore fresh issue. The HDB IPO opened today and will close on 27 June.
Day 1 Bidding Status Across Investor Categories
| Category | Shares Reserved | Shares Bid For | Subscription (x) |
|---|---|---|---|
| Qualified Institutional Buyers (QIBs) | 3,20,85,713 | 3,01,740 | 0.01 |
| Non-Institutional Investors (NIIs) | 2,40,64,286 | 1,74,29,680 | 0.72 |
| └ NIIs (> ₹10 lakh) | 1,60,42,858 | 1,19,96,760 | 0.75 |
| └ NIIs (₹2 lakh – ₹10 lakh) | 80,21,428 | 54,32,920 | 0.68 |
| Retail Individual Investors (RIIs) | 5,61,50,000 | 1,65,60,900 | 0.29 |
| Employees | 2,85,714 | 4,99,840 | 1.75 |
| Shareholders (HDFC Bank) | 1,78,57,142 | 1,20,59,180 | 0.68 |
| Total | 13,04,42,855 | 4,68,51,340 | 0.36 |
Employees Drive Demand, While QIBs Stay on the Sidelines
On Day 1, the employee quota was the only portion to see oversubscription, reaching 1.75 times. The shareholder category, set aside for eligible investors in HDFC Bank, drew bids for 0.68 times its allocation. Retail investor interest remained lukewarm at just 0.29 times subscription.
Qualified Institutional Buyers (QIBs), who typically dominate the final day, were nearly absent, bidding for only 0.01 times the reserved quota.
Strong Retail Bidding at Cut-Off Price
BSE data revealed high demand clustered around the cut-off price, with 2.41 crore shares bid at that level, mainly from retail and eligible shareholders.
Despite the price band not being officially disclosed, bids were logged across a broad range starting from ₹700 upwards. However, interest tapered off at higher price points.
Key IPO Information
- Issue Opening Date: 25 June 2025
- Issue Closing Date: 27 June 2025
- Total Offer Size: ₹12,500 crore
- Fresh Issue: ₹2,500 crore
- Offer for Sale by HDFC Bank: ₹10,000 crore
- Proposed Listings: NSE (designated), BSE
HDB Financial’s Strategic Positioning
HDB Financial Services Ltd, a leading non-banking financial company (NBFC), is classified by the Reserve Bank of India (RBI) as an “Upper Layer NBFC.”
The firm reported a profit after tax (PAT) of ₹2,175.9 crore in FY25, with revenue reaching ₹16,300.3 crore. Its loan portfolio stood at ₹1.07 lakh crore as of 31 March 2025.
Institutional Flow Expected to Pick Up on Final Day
While institutional participation was negligible on Day 1, experts anticipate that major QIB bids will emerge closer to the closing date. The coming days will be crucial in determining the final subscription level, price discovery, and future listing sentiment.
About HDB Financial Services Ltd
HDB Financial Services Ltd is a retail-centric NBFC offering loans across three primary verticals: enterprise finance, asset-backed lending, and consumer credit. It is a fully-owned subsidiary of HDFC Bank Ltd and operates through an extensive branch network throughout India.
Market watchers will be keenly observing subscription trends in the next two days, especially from QIBs, to gauge allotment outcomes and potential listing performance.
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