HDB Financial IPO GMP grey market premium, review, Subscription, allotment, listing estimate @ Chanakyanipothi.com
+A legacy of 31 Years.
+India`s Oldest Investment & IPO website.
+Most Trusted by Investors across India.

Table of Contents

• GMP
• Reviews
• Subscription
• Allotment

What is the business of HDB Financial?

HDB Financial Services is one of the leading, diversified retail-focused NBFCs in India in terms of Total Gross Loan book size, according to the CRISIL Report. The Company is categorized as an Upper Layer NBFC (NBFC-UL) by the RBI. It offers a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network. Its lending products are offered through its three business verticals: Enterprise Lending, Asset Finance and Consumer Finance. It believes that the success of its business model and operating philosophy is evidenced by its strong and sustained growth and profitability metrics. Its Total Gross Loans stood at ₹986.2 billion as at September 30, 2024, reflecting a CAGR of 20.93% between March 31, 2022 to September 30, 2024. Its assets under management stood at ₹902.3 billion as at March 31, 2024 reflecting a CAGR of 21.18% between Fiscal 2022 and Fiscal 2024. In Fiscal 2024, it generated a profit after tax of ₹24.6 billion, which reflected a CAGR of 55.98% between Fiscal 2022 and Fiscal 2024. Its Total Gross Loans growth, operating efficiencies and strong asset quality helped it deliver Return on Average Assets of 3.03% and Return on Average Equity of 19.55% for Fiscal 2024, which is one of the highest amongst its NBFC peers, according to the CRISIL Report.

It began its journey in 2007 as a subsidiary of HDFC Bank, which is the largest private sector bank in India in terms of total assets of ₹36,880.7 billion as at September 30, 2024, with businesses (including those of its subsidiaries) spanning across retail and commercial banking, asset management, life insurance, general insurance and broking.

Its omni-channel “phygital” distribution model combines a large branch network, in-house tele-calling teams and various external distribution networks and channel partners. As at September 30, 2024, it had a pan-India network of 1,772 branches in 1,162 towns across 31 States and Union Territories, with over 80% of our branches located outside the 20 largest cities in India. Its network of branches is complemented by its external distribution channel partnerships with over 80 brands and original equipment manufacturers (“OEMs”) and external distribution networks with over 140,000 retailers and dealer touchpoints as at September 30, 2024.

Its tech-enabled operating processes have contributed to maintaining a strong asset quality and low Credit Costs despite its fast growing customer base and distribution network. This is evidenced by its GNPA and NNPA ratios of 2.10% and 0.83%, respectively, as at September 30, 2024 and Credit Costs Ratio (annualised) of 1.79% for the six-month period ended September 30, 2024. It remains focused on ensuring that it employs highly conservative policies for provisioning, with 66.82% of Provisioning Coverage Ratio as at March 31, 2024, one of the highest amongst the peers according to the CRISIL Report and a 3.88% provisioning on its Total Gross Loans, as at March 31, 2024.

For more information, click www.hdbfs.com

HDB Financial IPO GMP grey market premium, review, Subscription, allotment, listing estimate

HDB Financial IPO Review

Investment Rationale: HDB Financial Services IPO

HDB Financial Services is the seventh-largest diversified, retail-focused non-banking financial company (NBFC) in India, based on its Total Gross Loan Book of Rs.902.2 billion as of March 31, 2024. By March 31, 2025, this figure had grown to Rs.1,068.8 billion, registering a robust CAGR of 23.54% between FY23 and FY25.

The company’s Assets Under Management (AUM) stood at Rs.1,072.6 billion as of March 31, 2025, growing at a CAGR of 23.71% during the same period. In FY25, HDB reported a Profit After Tax (PAT) of Rs.21.8 billion, reflecting a CAGR of 5.38% over two years.

Strong Financial Metrics

• Return on Assets (RoA): 2.16%

• Return on Average Equity (RoE): 14.72%
  These returns are ranked 7th and 5th, respectively, among peer NBFCs, showcasing efficient operations and prudent financial management.

Expansive and Inclusive Customer Franchise

According to the CRISIL Report, HDB Financial holds the position of the second-largest and third-fastest growing customer franchise among NBFCs with available data. It served 19.2 million customers as of March 31, 2025, growing at an impressive CAGR of 25.45% between March 2023 and March 2025.

HDB’s extensive physical presence supports its growth:

• 1,771 branches across 1,170 towns and cities in 31 states and union territories.

• Over 80% of branches are located outside India’s 20 largest cities, with more than 70% in Tier 4+ towns.

Omnichannel “Phygital” Distribution Model

HDB effectively integrates physical branches, in-house tele-calling units, and a vast external partner network:

• Ties with 80+ brands and OEMs.

• Access to 140,000+ retail and dealer touchpoints.

Robust Asset Quality & Risk Management

HDB maintains disciplined asset quality:

• Gross NPA (GNPA): 2.26%

• Net NPA (NNPA): 0.99%

• Credit Cost Ratio: 2.14%

• Provisioning Coverage Ratio: 55.95% (3rd highest among peers)

• Provisions: 3.31% of Gross Loans

Its conservative approach to provisioning and a strong Asset-Liability Management (ALM) framework helps safeguard against liquidity and interest rate risks.

---

IPO Valuation and Growth Potential

In FY25, the company earned an EPS of Rs.27.40. At the IPO’s upper price band of Rs.740, this implies a P/E ratio of 27.00x. With a current grey market premium (GMP) of Rs.74, listing at Rs.814 (P/E of 29.70x) seems plausible.

By comparison, Bajaj Finance trades at a P/E of 34.30x. Applying this valuation to HDB suggests a potential post-listing price of Rs.940.

Additionally, we anticipate a strong quarterly performance for Q1 FY26, (Annualised Projected EPS of Rs. 41 for 2025-26) which could further drive momentum post-listing.

---

Investment Recommendation

Despite a current GMP of just Rs.74, we strongly recommend applying for the IPO for both listing gains and as a medium to long-term investment. With strong fundamentals, rapid growth, and a wide distribution network, HDB Financial offers a compelling investment opportunity in India’s fast-growing NBFC sector.

Conclusion: Must Apply for the IPO

• Market Analysis by Nagaraj Shetti
• Stock Market today by Vaishali Parekh
• Analysis by Kotak Securities
• Market Analysis by HDFC Securities
• Technical Analysis by Kotak Securities
• Technical Analysis by Samco Securities

• Reliance, Target & Stoploss
• Gold Analysis
• FII buy-Sell
• Technical Analysis 
• Calls for the Day
• Currency Analysis

Quicklinks

• Staffavailable.com
• BigGaddi.com
• Sahifund.com
• Magajmari.com
• AnalysisLibrary.com

HDB Financial IPO GMP

HDB Financial IPO GMP today details

HDB Financial IPO GMP grey market premium, review, Subscription, allotment, listing estimate