HDB Financial IPO subscribed 1.16x on Day 2; strong NII demand lifts overall bidding

The ₹12,500 crore initial public offering (IPO) of HDB Financial Services, a wholly owned subsidiary of HDFC Bank, garnered healthy investor interest on the second day of bidding, with the issue subscribed 1.16 times overall as of 5 PM on June 26.

The non-institutional investor (NII) segment led the charge with bids for 229% of the shares reserved for them, while qualified institutional buyers (QIBs) picked up 90% of their allotted portion. The retail individual investor (RII) category saw a subscription of 64%.

The IPO, which opened for subscription on June 25 and will close on June 27, comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by parent HDFC Bank. At the upper end of the ₹700–₹740 price band, the issue values HDB Financial at ₹61,400 crore.

The funds raised through the fresh issue will be used to bolster the company’s Tier-I capital base, supporting future lending and business growth. Post-issue, HDFC Bank will continue to hold a majority stake in the non-banking financial company (NBFC).

As of March 2025, HDB Financial Services had total assets of ₹1.09 lakh crore and a gross loan book of ₹1.03 lakh crore. The company reported a net profit of ₹531 crore, with a capital adequacy ratio of 19.22%, a gross Stage 3 ratio of 2.26%, and a robust liquidity coverage ratio of 161%.

Employee and shareholder categories also saw encouraging interest. The employee portion was subscribed nearly 3 times (2.97x), while the quota reserved for HDFC Bank shareholders was subscribed 1.68 times.

For more details, also read: HDB Financial IPO Day 2 Highlights

Meanwhile, shares of HDFC Bank Ltd ended at a record high of ₹2,000 on Thursday, June 26, making it the top contributor to the Nifty 50’s 300-point advance. The bank has gained in six of the last seven sessions.

The IPO is being managed by a strong consortium of book-running lead managers, including JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs, HSBC, IIFL, Jefferies, Morgan Stanley, Motilal Oswal, Nomura, Nuvama and UBS.

The final day of bidding will conclude on Friday, and investor response in the QIB segment will be key to driving overall subscription higher.