HDB Financial IPO Subscribed 37% on Day 2 – Employee Quota Fully Booked

Mumbai, 26 June 2025: The ₹12,500 crore initial public offering (IPO) of HDB Financial Services saw 37% subscription on the second day of bidding. Investors placed bids for 4.86 crore shares out of the 13.04 crore shares available, signalling tepid enthusiasm outside select investor segments.

Employees Show Overwhelming Support While Other Segments Lag

The employee quota emerged as the standout performer, being oversubscribed at 177%, reflecting strong internal backing. Meanwhile, the HDFC Bank shareholder portion reached 77%. However, other key categories witnessed lower engagement:

• Qualified Institutional Buyers (QIBs): 1%
• Non-Institutional Investors (NIIs): 76%
• Retail Individual Investors (RIIs): 30%

Despite the muted broader response, strong employee and shareholder demand hint at internal confidence in the company’s growth story.

IPO Structure and Capital Deployment Plans

The issue is priced between ₹700 and ₹740 per share. It consists of a fresh issue worth ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by the parent company HDFC Bank.

The minimum application is for 20 equity shares, with subsequent bids required in multiples thereof.

Proceeds from the fresh issue will be utilised to enhance Tier-I capital, supporting expansion in the enterprise, asset finance, and consumer finance segments. A portion will also cover issue-related expenses.

Anchor Investors Infuse ₹3,368.99 Crore Ahead of Public Launch

Prior to the IPO’s opening to the public, anchor investors were allocated 4.55 crore equity shares at ₹740 each, bringing in ₹3,368.99 crore.

Prominent institutional participants included:

• Life Insurance Corporation of India (LIC)
• BlackRock
• Goldman Sachs Funds
• ICICI Prudential Mutual Fund
• UTI Mutual Fund

This pre-IPO anchor interest added credibility and momentum ahead of public bidding.

Final Day Crucial as Subscription Closes on Friday

With the final day of bidding on Friday, 27 June, investor activity will be closely watched to determine if interest picks up across retail and institutional categories.

As of now, while internal sentiment appears strong, broader market participation will be key to the IPO’s final outcome.

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