HDB Financial IPO Sees 13% Subscription by Midday on Day 1, Driven by Retail and NII Participation
By Shishta Dutta | Published at: Jun 25, 2025 12:59 PM IST
Mumbai, 25 June 2025: The ₹12,500-crore initial public offering (IPO) of HDB Financial Services Ltd., a wholly owned subsidiary of HDFC Bank, garnered a 13% subscription as of 11:57 AM IST on Day 1 of the issue. Early demand was largely led by retail individual investors (RIIs) and non-institutional investors (NIIs), while the qualified institutional buyer (QIB) segment showed minimal traction at this stage.
IPO Subscription Snapshot (As of 11:57 AM, 25 June)
| Category | Shares Offered | Shares Bid For | Subscription (x) |
|---|---|---|---|
| QIBs (Qualified Institutional Buyers) | 3,20,85,713 | 10,640 | 0.00 |
| NIIs (Non-Institutional Investors) | 2,40,64,286 | 46,76,380 | 0.19 |
| RIIs (Retail Individual Investors) | 5,61,50,000 | 77,65,820 | 0.14 |
| Employees | 2,85,714 | 2,66,380 | 0.93 |
| Shareholders (HDFC Bank) | 1,78,57,142 | 46,41,160 | 0.26 |
| Total | 13,04,42,855 | 1,73,60,380 | 0.13 |
Segment-Wise Demand: NIIs and Retail Drive Day 1 Momentum
Non-Institutional Investors (NIIs)
This category saw 0.19x subscription, led by high net-worth individuals (HNIs) who bid for 28.07 lakh shares in the ₹10 lakh+ bracket. The mid-segment bidders (₹2–10 lakh range) contributed to 23% of their allocated portion.
Retail Individual Investors (RIIs)
Retail participation stood at 14%, with strong interest in cut-off bids, which are price-insensitive applications. Over 70.8 lakh shares were bid at cut-off, indicating confidence in valuation.
Employee Quota
Demand from employees was robust, with 0.93x subscription, as 93% of the reserved 2.85 lakh shares were bid for. This reflects internal optimism about the company’s public offering.
Shareholder Reservation (HDFC Bank Shareholders)
This segment saw 26% subscription, also dominated by cut-off bids, which accounted for 41.4 lakh applications, suggesting a price-agnostic sentiment from long-term investors.
Anchor Investor Commitment Underlines Institutional Confidence
Ahead of the IPO, HDB Financial had already secured a commitment of ₹3,369 crore from anchor investors, pointing to strong institutional interest despite the QIB segment remaining nearly unsubscribed on Day 1. The HDB IPO remains open until 27 June 2025, giving institutional players additional time to participate.
About HDB Financial Services Ltd: Major NBFC Readies for Market Debut
HDB Financial Services is a leading non-banking financial company (NBFC), fully owned by HDFC Bank, with a diversified product portfolio. It offers a mix of secured and unsecured loans across consumer, business, and commercial segments. With over 1,500 branches across the country, the company has built a strong physical presence and a large customer base.
The IPO marks HDB’s first step into the public markets, providing an opportunity for investors to gain exposure to one of India’s key private lending institutions that has, until now, operated privately under HDFC’s umbrella.
IPO Launch Follows Strong FY25 Business Trends
In the lead-up to its IPO, HDB Financial Services reported healthy disbursement growth and improved asset quality, contributing to positive sentiment among analysts. Its net interest margins (NIMs) have remained stable, and the company has reduced its non-performing assets (NPAs) over the last two quarters, aided by robust collections.
Additionally, the parent company HDFC Bank’s recent performance and continued dominance in the Indian banking sector have added credibility to HDB’s valuation. The IPO is also seen as part of a broader strategy to unlock value from HDFC’s financial services ecosystem following its merger with HDFC Ltd.
Outlook: Subscription Expected to Pick Up as Deadline Nears
With two days left before closing, market watchers anticipate higher activity from institutional investors, particularly in the QIB category. If sentiment remains positive and broader markets stay steady, the issue could see full or near-full subscription by 27 June.
Given its backing by HDFC Bank, diversified lending operations, and wide distribution footprint, HDB Financial’s IPO is being closely tracked by both retail and institutional participants as one of the more prominent NBFC listings of the year.
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