HDB Financial Services listing: Shares make strong market debut at 12.84% premium; open at Rs 835 on BSE, NSE

HDB Financial Services made a strong debut on the stock exchanges on Wednesday, with its shares listing at Rs 835- a 12.84 per cent premium over the issue price of Rs 740. The stock opened higher by Rs 95 on both the NSE and BSE, reflecting solid investor interest following a heavily subscribed IPO. As of 10.06 AM, the shares were trading around 13.6 per cent higher.A Rs 12,500 crore public issue, comprising a Rs 2,500 crore fresh issue and a Rs 10,000 crore offer-for-sale, was subscribed 16.69 times. Qualified Institutional Buyers (QIBs) led the subscription, with their allocation oversubscribed 55.47 times. However, retail investors remained cautious, subscribing only 1.41 times their quota.“Institutional investors recognize HDB’s structural advantage as a diversified, RBI upper-layer NBFC with HDFC Bank’s distribution muscle,” Tarun Singh, MD and Founder of Highbrow Securities had said.“The 55x QIB bid reflects confidence in its ‘phygital’ presence across Tier 2–4 cities and a 23% loan book CAGR, whereas retail caution mirrors the post-LIC and Paytm skepticism toward large issuances,” he further added. The IPO received over Rs 1.61 lakh crore in bids. Additionally, Analysts at Emkay Global, quoted by ET, have initiated coverage on HDB Financial Services with a ‘buy’ rating and a target price of Rs 900 by June 2026, citing the company’s strong fundamentals and growth potential. They highlighted HDB’s diversified and granular lending franchise, with over 19 million customers and minimal concentration risk. The firm’s strategy of direct sourcing, focus on underpenetrated rural markets, and lending to low-to-mid-income groups with limited credit history reflects a robust and consistent execution by an experienced leadership team. Emkay expects HDB to benefit from a favorable interest rate cycle and credit cost moderation, projecting strong financials with 20 per cent AUM and 27 per cent EPS CAGR over FY25–28, along with RoA and RoE of 2.7 per cent and 17 per cent, respectively, by March 2028.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)