Following its listing at Rs 835, HDB Financial shares moved up another 1% to Rs 845.75 BSE. The IPO garnered over Rs 1.61 lakh crore in bids, but institutional interest was higher than that of retail. While the QIB (qualified institutional buyer) portion was oversubscribed over 55x, retail held back at 1.4x. Overall, the IPO was oversubscribed nearly 17 times.
This made HDB’s offering the second most subscribed IPO among Rs 10,000+ crore issues, trailing only the record-breaking Tata Technologies listing. However, it did fall short of surpassing the all-time high of Rs 3 lakh crore subscription seen in Bajaj Housing Finance IPO, Prashanth Tapse of Mehta Equities said.
Also Read | HDB Financial Services lists at 12.84% premium, debuts at Rs 835 on BSE, NSE
The brokerage has told clients to hold HDB Financial shares for the long term, given that it is strategically positioned to benefit from India’s structural credit growth, especially within the retail and SME financing segments.
Emkay initiates coverage on HDB Financial shares
Emkay became the first brokerage to initiate coverage on HDB Financial Services with buy call and June 2026 target price of Rs 900 by valuing it at FY27 P/B of 3x.It gave three reasons on its positive view on HDB:1) HDB Financial is a highly diversified (geographically and product-wise), extremely granular (top 20 accounts constitute ~0.34% of AUM), and large-scale lending franchise with over 19mn customers. It has seen multiple credit cycles, Covid, and built from scratch with a bottom-up approach.
2) Its strategy of focusing on direct sourcing (~82% of FY25 disbursements), remote areas (70% branches are in tier 4 towns and beyond), and low-to-mid-income groups with limited to no credit history has been driven by the skilled top management (most have been in HDBFS for over 10Y), reflecting strong conviction and consistency.
3) With a favorable interest rate cycle amid frontloaded repo rate cuts driving NIM expansion, credit cost moderation, and the growth outlook improving, HDBFS is well positioned to improve profits/growth, to achieve 2.7%/17% RoA/RoE, respectively, by Mar-28, and deliver ~20%/27% AUM/EPS CAGR over FY25-28E.
