HDB Financial shares to list on Wednesday: What GMP signals ahead of stock market debut

Shares of HDB Financial Services Ltd., the non-bank lending unit of HDFC Bank Ltd., are set to make their Dalal Street debut on Wednesday, July 2. The stock is headed for a decent landing at the bourses, if one goes by the latest signals from the unofficial market.

As of the last update, the GMP for HDB Financial IPO stood at ₹67, indicating a listing gain of 9%.

Many investors use grey market premiums (GMP) as an informal indicator of potential listing performance.

The three-day issue of HDB Financial Services ended for subscription on June 27, with an overall subscription of 16.69 times the shares on offer.

Investors placed bids for 217.7 crore shares as against the 13.04 crore shares that were put up for bidding.

Considering the upper price band of ₹700 - ₹740 per share, HDB Financial received bids worth ₹1.61 lakh crore, marginally higher than the ₹1.56 lakh crore that the Tata Technologies IPO had received back in 2023, but lower than Bajaj Housing Finance's mega ₹3 lakh crore worth of bids last year.

The portion reserved for Qualified Institutional Bidders (QIBs), not only saw full subscription on the final day of the IPO, but ended with a final figure of over 55 times the shares on offer.

The other major bids came from non-institutional investors, existing shareholders of HDFC Bank and existing employees of HDB Financial. Although the retail portion saw full subscription, it was the least subscribed among the other segments of the issue.

With this, HDB Financial has also become the second-most subscribed Indian IPO, whose value has been in excess of ₹10,000 crore. The 16.7x subscription was higher than Coal India (15.28x) but fell short of SBI Cards (26.54x).

Most of the other large IPOs above ₹10,000 crore, including Hyundai Motor India, LIC, Paytm, among others, have seen overall subscription figures between 1.5x to 3x the shares on offer.

HDB Financial's allotment of shares took place on Monday, June 30.

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