HDB Financial Services IPO Opens June 25: Price Band Set at Rs 700–740 Per Share

HDB Financial Services, a company under HDFC Bank, is launching its Initial Public Offering (IPO) on June 25. Even before it opens, the company’s shares are being traded in the grey market with a premium of Rs 47–48, or about 6.35%, above the IPO price.

Earlier, shares in the unlisted market were selling for Rs 1,200 to Rs 1,350. This was much higher than the IPO’s upper price of Rs 740 per share. At the top price, the company is valued at around 3.72 times its book value. This is close to the value of other NBFCs like Bajaj Finance and Shriram Finance. Experts say the pricing is careful and fair for large investors.

Experts also believe this is a good IPO to consider. They point to the company’s strong background, known brand, solid risk management, and high credit ratings. The company is one of the biggest NBFCs in the country and serves a large number of customers. Analysts think it will grow well and keep improving its asset quality.

The IPO will raise Rs 12,500 crore, which includes Rs 2,500 crore as fresh shares and Rs 10,000 crore as an offer for sale by current shareholders. The price band is set between Rs 700 and Rs 740. People can apply for a minimum of 20 shares, and more in multiples.

Some shares are kept aside for employees and HDFC Bank shareholders. Employees can buy from a pool worth Rs 20 crore, and shareholders from a pool worth Rs 1,250 crore. At the highest price, the total market value of the company could be around Rs 61,388 crore.

The IPO is managed by a large group of financial firms. The registrar of the issue is MUFG Intime India.