HDB Financial IPO Day 3 Breakdown: Subscription Surge, GMP Update, and Allotment Date: The HDB Financial IPO Day 3 Breakdown has captured the attention of investors across India, marking a pivotal moment in the 2025 IPO market. As the largest non-banking financial company (NBFC) IPO to date, HDB Financial Services, a subsidiary of HDFC Bank, closed its subscription window on June 27, 2025, with a staggering subscription surge of 16.69 times. Investors are now eagerly awaiting the allotment date and tracking the GMP update to gauge potential listing gains. This article dives deep into the subscription details, grey market premium trends, allotment timeline, and what investors can expect moving forward. Whether you’re a retail investor, a qualified institutional buyer (QIB), or a non-institutional investor (NII), this comprehensive guide will help you navigate the HDB Financial Services IPO with clarity and confidence.

What is the HDB Financial Services IPO?

HDB Financial Services, a leading NBFC in India, launched its initial public offering (IPO) to raise ₹12,500 crore, making it the largest NBFC IPO in Indian history. The IPO, which opened on June 25 and closed on June 27, 2025, comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by its parent, HDFC Bank. The price band was set at ₹700–₹740 per share, with a minimum lot size of 20 shares, requiring a retail investment of approximately ₹14,800 at the upper price band.

Key Details of the HDB Financial Services IPO

• IPO Size: ₹12,500 crore (₹2,500 crore fresh issue + ₹10,000 crore OFS)
• Price Band: ₹700–₹740 per share
• Lot Size: 20 shares (minimum retail investment: ₹14,800)
• Subscription Dates: June 25–27, 2025
• Allotment Date: June 30, 2025
• Listing Date: July 2, 2025 (BSE and NSE)
• Registrar: MUFG Intime India Private Limited (formerly Link Intime)
• Book Running Lead Managers: BNP Paribas, JM Financial, Goldman Sachs, Morgan Stanley, and others

The proceeds from the fresh issue will bolster HDB Financial’s Tier-I capital base, supporting its expansion in enterprise lending, asset finance, and consumer finance verticals. The OFS allows HDFC Bank to reduce its stake from 94.32% to approximately 74.19%, aligning with RBI’s mandate for upper-layer NBFCs to list by September 2025.

HDB Financial IPO Day 3 Breakdown: Subscription Surge

The HDB Financial IPO Day 3 Breakdown revealed an overwhelming response from investors, with the issue subscribed 16.69 times by 5:00 PM on June 27, 2025. According to NSE data, the IPO received bids for over 217.66 crore equity shares against the 13.04 crore shares offered, making it one of the most subscribed billion-dollar IPOs since Zomato’s 2021 public issue.

Subscription Status by Investor Category

• QIBs Led the Charge: The QIB portion saw an extraordinary 55.47x subscription, driven by strong demand from domestic mutual funds, insurance firms, and foreign institutional investors. This reflects confidence in HDB Financial’s long-term growth potential.
• NIIs Showed Strong Interest: Non-institutional investors, particularly high-net-worth individuals (HNIs), subscribed 9.99x, with the big HNI (bNII) segment reaching 11.77x.
• Retail Investors: The retail portion was subscribed 1.41x, indicating moderate but steady participation. Retail investors applied for 7.91 crore shares against the 5.61 crore shares allocated.
• Employee and Shareholder Quotas: The employee portion was subscribed 5.72x, while the shareholder quota saw 4.26x subscription, reflecting strong internal support.

This subscription surge underscores HDB Financial’s appeal, backed by its strong parentage, diversified loan portfolio, and robust growth metrics. However, the high subscription, particularly in the QIB and NII categories, may lead to lower allotment ratios for retail investors.

GMP Update: What Does the Grey Market Premium Indicate?

The GMP update for the HDB Financial Services IPO provides insights into investor sentiment and potential listing gains. As of June 27, 2025, the grey market premium (GMP) stood at ₹54–₹57, down from a pre-IPO high of ₹104.5. At the upper price band of ₹740, this translates to an estimated listing price of ₹794–₹797, suggesting potential listing gains of 7.3%–7.7%.

GMP Trends Over the Subscription Period

• Pre-IPO (June 24): GMP was ₹74–₹75, indicating a 10% premium.
• Day 1 (June 25): GMP dropped to ₹50.5, reflecting a 6.82% premium.
• Day 2 (June 26): GMP remained around ₹50–₹75, with a slight uptick to 7%.
• Day 3 (June 27): GMP stabilized at ₹54–₹57, signaling 7.3%–7.7% listing gains.

The decline in GMP from its pre-IPO peak suggests cautious optimism among grey market traders, possibly due to the large issue size and high OFS component. However, the slight recovery on Day 3 reflects renewed investor confidence following the subscription surge. Investors should note that GMP is an unofficial indicator and subject to volatility, so decisions should not rely solely on it.

Why the GMP Matters

• Investor Sentiment: A positive GMP indicates strong demand for the IPO in the unlisted market.
• Listing Gains: A GMP of ₹54–₹57 suggests modest short-term gains for allottees.
• Risk Factor: The high OFS (80% of the issue) means most proceeds go to HDFC Bank, not the company, which may temper short-term gains.

Allotment Date and How to Check Status

The allotment date for the HDB Financial Services IPO is set for June 30, 2025. Investors can check their allotment status on the registrar’s website (MUFG Intime India Private Limited) or through the BSE and NSE platforms. Refunds for unallotted shares will be processed on July 1, 2025, with allotted shares credited to demat accounts on the same day. The shares are scheduled to list on the BSE and NSE on July 2, 2025.

Steps to Check Allotment Status

1. Visit the Registrar’s Website: Go to MUFG Intime India.
2. Select IPO: Choose “HDB Financial Services IPO” from the dropdown menu.
3. Enter Details: Input your PAN number, application number, or DP Client ID.
4. Check Status: Submit to view your allotment status.
5. Alternative Platforms: Use the BSE (bseindia.com) or NSE (nseindia.com) websites for verification.

Investors are advised to apply at the cut-off price (₹740) and use multiple demat accounts to improve allotment chances, given the high subscription rates.

Why HDB Financial Services IPO Attracted Investors

HDB Financial Services’ strong fundamentals and market positioning contributed to the subscription surge. Here’s why investors are bullish on this IPO:

1. Strong Parentage

As a subsidiary of HDFC Bank, HDB Financial benefits from a trusted brand, robust governance, and a high credit rating (CARE AAA and CRISIL AAA for long-term debt).

2. Diversified Portfolio

HDB operates across three verticals:

• Enterprise Lending: Secured and unsecured loans to MSMEs and salaried employees.
• Asset Finance: Financing for commercial vehicles, construction equipment, and tractors.
• Consumer Finance: Loans for personal and household needs, including two-wheelers and automobiles.

This diversified loan book reduces concentration risk, with no single product exceeding 25% of the total gross loan book.

3. Robust Growth Metrics

• AUM Growth: Assets under management (AUM) reached ₹1,072.6 billion by March 31, 2025, with a CAGR of 23.71% from FY23 to FY25.
• Customer Base: Served 17.5 million customers by September 30, 2024, with a CAGR of 28.22% since FY22.
• Asset Quality: Maintained average gross NPAs at 2.3%, indicating strong risk management.

4. Attractive Valuation

At the upper price band of ₹740, the IPO is valued at a price-to-book (P/B) ratio of 3.4x–3.5x, lower than peers like Bajaj Finance (5.7x P/B). Analysts from Sharekhan, KR Choksey, and SBI Securities have assigned a “Subscribe” rating, citing reasonable valuations and long-term growth potential.

5. Extensive Reach

HDB’s “phygital” model combines 1,771 branches across 1,170 towns and cities with digital platforms, including a mobile app and fintech partnerships. Over 80% of branches are located outside India’s top 20 cities, targeting underbanked and “new to credit” customers.

Case Study: Comparing HDB Financial with Bajaj Finance

HDB Financial’s valuation and growth trajectory make it a compelling alternative to Bajaj Finance, a leading NBFC. While Bajaj Finance trades at a P/B ratio of 5.7x, HDB’s 3.4x–3.5x P/B offers a discount. HDB’s smaller size (AUM of ₹1,072.6 billion vs. Bajaj’s ₹3,000+ billion) provides a longer growth runway, supported by HDFC Bank’s ecosystem and digital-first approach.

Risks to Consider

Despite its strengths, the HDB Financial Services IPO carries risks:

• High OFS Component: ₹10,000 crore of the issue is an OFS, meaning 80% of proceeds benefit HDFC Bank, not the company.
• Profitability Pressure: Net profit declined from ₹2,460.84 crore in FY24 to ₹2,175.92 crore in FY25 due to interest rate volatility.
• Regulatory Risks: Stringent RBI regulations on capital adequacy and lending caps could impact growth.
• GMP Volatility: The drop in GMP from ₹104.5 to ₹54–₹57 suggests limited short-term gains for speculators.

Investors should weigh these risks against the company’s strong fundamentals and consult financial advisors before investing.

Internal Links:

1. HDB Financial IPO Day 3 Breakdown.
2. Follow Fundmetry.com for more financial updates.

FAQ Section

1. What was the subscription status of the HDB Financial Services IPO on Day 3?

The HDB Financial Services IPO was subscribed 16.69 times on Day 3, receiving bids for over 217.66 crore shares against the 13.04 crore shares offered. The QIB portion led with a 55.47x subscription, followed by NIIs at 9.99x and retail investors at 1.41x. The employee and shareholder quotas were subscribed 5.72x and 4.26x, respectively. This strong demand reflects investor confidence in HDB’s growth potential, backed by HDFC Bank’s parentage and a diversified loan portfolio. Investors should note that high subscription rates, especially in the QIB and NII categories, may reduce allotment chances for retail investors.

2. What is the grey market premium (GMP) for the HDB Financial Services IPO?

As of June 27, 2025, the GMP for the HDB Financial Services IPO was ₹54–₹57, indicating a 7.3%–7.7% premium over the upper price band of ₹740. This suggests an estimated listing price of ₹794–₹797. The GMP dropped from a pre-IPO high of ₹104.5, reflecting cautious optimism in the grey market. Investors should be aware that GMP is an unofficial indicator and subject to volatility. It’s advisable to consider HDB’s fundamentals, such as its 3.4x P/B valuation and 23.71% AUM CAGR, rather than relying solely on GMP for investment decisions.

3. When is the allotment date for the HDB Financial Services IPO, and how can I check it?

The allotment date for the HDB Financial Services IPO is June 30, 2025. Investors can check their allotment status on the MUFG Intime India website (in.mpms.mufg.com) by entering their PAN, application number, or DP Client ID. Alternatively, use the BSE (bseindia.com) or NSE (nseindia.com) websites. Refunds for unallotted shares will be processed on July 1, 2025, with shares credited to demat accounts on the same day. The listing is scheduled for July 2, 2025, on BSE and NSE.

4. Is the HDB Financial Services IPO a good investment?

The HDB Financial Services IPO is considered attractive for long-term investors due to its 3.4x–3.5x P/B valuation, which is lower than peers like Bajaj Finance (5.7x P/B). Analysts from Sharekhan, SBI Securities, and KR Choksey recommend subscribing, citing HDB’s strong parentage, diversified portfolio, and 23.71% AUM CAGR. However, risks include a high ₹10,000 crore OFS component, profitability pressures (PAT declined to ₹2,175.92 crore in FY25), and regulatory challenges. Short-term gains may be limited, with GMP indicating 7.3%–7.7% listing gains. Consult a financial advisor and review the Red Herring Prospectus (RHP) before investing.

5. How does HDB Financial Services compare to other NBFCs like Bajaj Finance?

HDB Financial Services, with an AUM of ₹1,072.6 billion, is smaller than Bajaj Finance (₹3,000+ billion) but offers a more attractive valuation at 3.4x–3.5x P/B compared to Bajaj’s 5.7x P/B. HDB’s diversified portfolio across enterprise lending, asset finance, and consumer finance, coupled with HDFC Bank’s backing, positions it for strong growth. Its focus on underbanked segments and a 28.22% customer growth CAGR since FY22 give it a longer growth runway. However, Bajaj Finance has a more established market presence and higher profitability. Investors should weigh HDB’s valuation discount against Bajaj’s proven track record.

6. What are the risks associated with the HDB Financial Services IPO?

Key risks include the high OFS component (₹10,000 crore), which benefits HDFC Bank rather than the company, potentially limiting short-term gains. Profitability pressures are evident, with net profit dropping to ₹2,175.92 crore in FY25 from ₹2,460.84 crore in FY24 due to interest rate volatility. Stringent RBI regulations on capital adequacy and lending caps could restrict growth. The GMP’s decline from ₹104.5 to ₹54–₹57 suggests modest listing gains, which may disappoint short-term investors. Long-term investors should focus on HDB’s fundamentals and consult advisors to mitigate risks.

Conclusion

The HDB Financial IPO Day 3 Breakdown highlights a remarkable subscription surge of 16.69x, driven by strong QIB and NII participation. The GMP update indicates modest listing gains of 7.3%–7.7%, while the allotment date on June 30, 2025, is the next milestone for investors. Backed by HDFC Bank’s parentage, HDB Financial Services offers a compelling investment case with its diversified portfolio, robust growth, and attractive valuation. However, risks like the high OFS component and profitability pressures warrant caution. For long-term investors, this IPO presents an opportunity to tap into India’s expanding NBFC sector. Share your thoughts in the comments, subscribe to our newsletter for more IPO updates, or consult a financial advisor to make an informed decision!