HDFC Bank-backed HDB Financial Services' Rs 12,500 crore initial public offering (IPO) was fully subscribed on Thursday's second day of bidding, with an overall subscription of 1.16 times.

Non-institutional investors (NIIs) took the lead, bidding 2.29 times the portion on offer for them, followed by qualified institutional buyers (QIBs), who were 90% subscribed, while the retail portion was still 64% subscribed.

Meanwhile, the employee quota was subscribed 2.97 times, while the shareholder reservation portion was subscribed 1.67 times.

Key Highlights

• HDB IPO fully subscribed 1.12× on Day 2; employees reserved segment oversubscribed nearly 3×.
• Grey‑market premium hovers ~₹50–56, implying ~7% listing gain on ₹740 upper price band.

In the grey market, HDB shares were trading at a premium of Rs 59-61, down from Rs 74-75 on Day 1, indicating that the grey market premium (GMP) has fallen from 10% to around 8%.

Prior to the IPO launch, HDB Financial Services raised Rs 3,369 crore from anchor investors by allotting 4.55 crore shares at Rs 740 each—the upper end of the price range.

Life Insurance Corporation of India (LIC) received the largest allocation, accounting for 6.53% of the anchor portion, which amounts to approximately Rs 220 crore.

Also Read: HDB Financial Services to Launch Highly Anticipated IPO Next Week

HDB Financial IPO details

The IPO consists of a fresh issue of shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent company HDFC Bank, which currently owns 95.5% of the NBFC. The price range is set at Rs 700-740 per share.

At the high end of the price range, the IPO values the company at 3.7 times its projected FY25 post-issue book value.

Analysts believe the valuation is reasonable, citing HDB Financial's operational strength and HDFC Bank's strong parentage as significant advantages.

HDB Financial Services IPO key dates

The IPO's subscription period began on June 25 and will end on June 27. The basis of allotment is expected to be finalized on June 30, with a July 2 listing on the NSE and BSE.