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HDB Financial jumps 13% on debut, valued at ₹69,704 crore
At the end of trading, HDB Financial Services—a subsidiary of HDFC Bank—was valued at Rs 69,704 crore, up from Rs 61,253 crore during the IPO. This valuation places the company as the eighth most valuable NBFC in India.
The significant rise was driven by strong demand from institutional investors during the company's Rs 12,500 crore IPO, the largest of the year and the fifth largest in the domestic market. The IPO received 17 times more demand than the shares on offer, generating bids worth Rs 1.6 trillion, with over 80 per cent of the bids coming from institutional investors.
HDB Financial Services is a diversified, upper-tier NBFC that offers loans through three key verticals: enterprise lending, asset finance and consumer finance. As of March 31, 2025, secured loans constituted 73 per cent of the total loan book. In FY25, the company reported a net profit of approximately Rs 2,180 crore.
The company currently manages assets worth nearly Rs 1 trillion—lower than those of other NBFC peers such as Bajaj Finance (Rs 2.75 trillion), Cholamandalam Investment and Finance (Rs 1.6 trillion), M&M Finance (Rs 1.12 trillion) and Shriram Finance (Rs 2.4 trillion).
Analysts noted that HDB Financial Services currently trades at slightly over three times its estimated FY26 book value, which is a discount compared to peers like Bajaj Finance and Cholamandalam—both of which have superior return ratios and growth prospects. However, most broking houses had issued a 'subscribe' rating for the IPO, citing HDB's robust franchise, strong promoter backing and relatively better asset quality than most NBFC peers.
Experts highlighted that a proposal by the Reserve Bank of India (RBI), if approved, could require HDFC Bank to reduce its stake in HDB Financial Services to 20 per cent. This potential regulatory change could be a key overhang for the stock. Following the IPO, HDFC Bank's stake in HDB Financial Services has decreased from 94.04 per cent to 74.19 per cent.
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