HDB Financial Services earns 1st 'Buy' rating
HDB Financial Services's IPO saw huge interest—subscribed 16.7 times overall.
Big investors (QIBs) led with a massive 55x subscription, while non-institutional buyers went for 10.55x and retail investors joined in at 1.4x.
Shares were offered at ₹700-740 each, raising up to ₹12,500 crore.
Strong parentage, low-risk model, and steady leadership
As an HDFC Bank subsidiary, HDB offers loans mainly to low- and mid-income customers—especially in smaller towns (70% of branches are Tier 4 or beyond).
The company keeps risk low by spreading its loan book widely; its top 20 accounts make up just 0.34% of assets.
Leadership has stuck around for over a decade and focuses on growing steadily across new locations and products.
Expecting about 22% upside from the IPO price
Brokerages like Emkay are optimistic, giving the stock a "buy" rating with a target price of ₹900 (about 22% higher than the IPO range).
They expect solid growth ahead—projecting assets under management to rise about 20% yearly and earnings per share to jump roughly 27% per year from FY25-FY28 thanks to steady rates and controlled credit costs.