Finance with I

HDB Financial Services, a subsidiary of HDFC Bank, is all set to make its debut on the stock exchanges today, July 2. As per early market signals and grey market premium (GMP) trends, the company’s shares are likely to list with a gain of up to 10% over its issue price. Investors and analysts are closely watching this much-awaited listing after a strong response to the company’s initial public offering (IPO).

Strong Listing Expected

According to market experts, HDB Financial shares could open between ₹475 and ₹500 per share, which is around 7% to 10% higher than the IPO price of ₹450. The positive mood in the stock market and strong interest from institutional and retail investors have built up high expectations for the stock’s performance on the first day.

The grey market premium (GMP) for HDB Financial shares has been steady at ₹30 to ₹45, showing solid interest from buyers even before listing. GMP is an unofficial measure of how much investors are willing to pay above the IPO price and is often used to predict listing gains.

IPO Received Strong Response

The IPO of HDB Financial Services opened for subscription from June 26 to June 28, 2025. The offer was subscribed to more than 12 times overall, showing high demand from all categories of investors. The qualified institutional buyers (QIB) portion was booked around 18 times, while retail investors subscribed nearly 5 times their portion. The non-institutional investors (NIIs) segment also saw good interest, with subscriptions reaching over 10 times.

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The company raised ₹10,000 crore through the IPO, which included both fresh equity and an offer for sale (OFS) by HDFC Bank. The proceeds will be used to strengthen the company’s capital base and support future growth.

About HDB Financial Services

HDB Financial Services is one of the leading non-banking financial companies (NBFCs) in India. It offers a wide range of financial products and services such as personal loans, business loans, gold loans, consumer durable loans, and asset finance. The company has a strong customer base, with over 1,500 branches across the country.

Being backed by HDFC Bank, HDB Financial enjoys strong credit ratings and stable business growth. In recent years, the company has shown consistent improvement in its financial performance. For the financial year ended March 2024, HDB Financial reported a net profit of ₹1,800 crore, with a healthy asset quality and return on equity.

Market Experts Positive

Market experts are optimistic about the listing and long-term prospects of HDB Financial Services. “The company has a strong brand, healthy loan book, and consistent profitability. Backing from HDFC Bank gives it extra strength in the NBFC space,” said Ravi Mehta, a financial analyst at a Mumbai-based brokerage firm.

“Looking at the subscription numbers and market mood, we expect the stock to list with at least 8% to 10% gains. Long-term investors may also benefit from holding the stock for a few years,” he added.

What Investors Should Watch

While the listing is expected to be strong, investors are advised to keep an eye on broader market conditions. Any sudden change in interest rates, inflation data, or banking sector news can affect the stock’s performance after listing.

Some analysts also suggest waiting for a few days after listing to see how the stock settles. “It is common to see some price volatility in the first few sessions after listing. Investors should look at the company’s fundamentals and business outlook before making fresh investments,” said a senior market strategist.

HDB Financial Services is likely to make a solid debut on the stock exchanges on July 2, 2025. With expected gains of up to 10% over the issue price, early investors may see quick returns. Strong company fundamentals, backing from HDFC Bank, and good IPO response all support a successful listing. However, investors should stay informed and take a long-term view when making decisions.

The Indian stock market is witnessing a surge in primary market activity this week, as seven initial public offerings (IPOs) are open for subscription, while as many as 19 companies are set to make their stock market debut. This high volume of IPOs and listings signals robust investor interest and a buoyant mood in the capital markets, driven by improved liquidity, a strong economy, and optimistic corporate earnings.

IPO Frenzy Grips Investors

Of the seven IPOs currently open for subscription, both mainboard and SME (small and medium enterprises) segments are actively participating in the action. Investors—retail, institutional, and high-net-worth individuals (HNIs)—are closely tracking these offerings for listing gains as well as long-term investment potential.

Some of the notable mainboard IPOs include a mix of manufacturing, engineering, and fintech companies. These companies are offering shares in price bands ranging between ₹90 and ₹1,200 per share, with subscription periods spread across three to five days. Early subscription data indicates that retail investors are showing strong interest, with a few IPOs already receiving oversubscription in the retail category within the first day of opening.

Meanwhile, the SME segment is also buzzing with activity. Several small-cap companies are hitting the market to raise funds for business expansion, working capital, and debt repayment. The SME IPOs, although smaller in size, are attracting niche investors looking for value in emerging businesses.

Diverse Sectors in Focus

What makes this IPO week particularly interesting is the diversity of sectors. Companies from industries such as pharmaceuticals, logistics, renewable energy, consumer goods, textiles, and digital services are participating. This sectoral spread is giving investors a wide array of choices to diversify their portfolios.

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Market analysts suggest that the success of recent IPOs has increased investor confidence. Many newly listed firms have delivered significant listing gains, encouraging more participation in upcoming offerings. At the same time, the continued strength of benchmark indices such as the Nifty 50 and Sensex is also driving positive sentiment in the primary market.

19 Companies to List This Week

In addition to IPOs open for subscription, 19 companies are scheduled to list their shares on the exchanges this week. These include both mainboard and SME listings, and the debut performance of these companies will be keenly observed by market participants.

The listing gains are expected to vary based on sectoral outlook, company fundamentals, issue pricing, and overall market sentiment. Some of the firms that closed their IPOs last week are already seeing strong grey market premiums, which is often seen as an early indicator of investor demand.

Market observers point out that the success or failure of these listings will impact investor participation in future IPOs. A strong listing performance can trigger further interest in upcoming issues, while a weak debut may make investors cautious.

Caution Advised Amid Hype

Despite the positive momentum, experts are advising investors to approach the IPO frenzy with due diligence. Not all IPOs guarantee listing gains or long-term profitability. Investors are encouraged to study the company’s financials, business model, competitive edge, and valuation before subscribing.

In recent months, regulatory bodies like SEBI have also increased scrutiny on IPO disclosures to ensure transparency and protect investor interests. This has helped maintain the credibility of the primary market, even amid heightened activity.

With seven IPOs open for subscription and 19 listings lined up, this week marks one of the busiest periods for the Indian primary market in 2025. It reflects growing investor appetite and corporate India’s confidence in tapping the capital markets for growth. However, amid this buzz, careful research and disciplined investing remain key to navigating the dynamic IPO landscape.