drashti HDB Financial Services is no stranger to the buzz of the unlisted market, but the recent turn of events has sent its shares soaring and investor excitement to new highs. Over the past month, its unlisted shares have shot up nearly 30%, just as the company awaits the green light from SEBI for its much-anticipated IPO. For a firm that’s spent years quietly consolidating its position in India’s lending ecosystem, the spotlight is finally turning its way.
The momentum is no accident. On June 3, 2025, SEBI officially approved HDB’s draft IPO papers — a long-awaited milestone that has seemingly re-ignited confidence in the company’s market prospects. By the next day, its unlisted shares were trading at ₹1,275, registering a sharp jump from previous levels. In contrast, parent HDFC Bank’s shares remained stable at ₹1,924.8, underscoring where the new energy is.
Zooming out a bit, HDB Financial Services has been quietly building investor trust. Over the past 12 months, its unlisted stock has appreciated by 17.5%, with nearly all of that momentum arriving in just the past 30 days. It’s the kind of pre-IPO rally that gives early investors the rare combination of validation and temptation. Is this just the beginning of a larger bull run, or are we witnessing peak euphoria? Only time — and the IPO roadshow — will tell.
Backed by a 94% ownership from HDFC Bank, HDB Financial is planning to raise ₹12,500 crore through the IPO. ₹2,500 crore will come from fresh equity issuance, while the remaining ₹10,000 crore will be an offer-for-sale by the promoter. Importantly, the listing isn’t just about raising funds — it’s also a regulatory necessity. The Reserve Bank of India, back in October 2022, mandated that all “upper-layer” NBFCs (Non-Banking Financial Companies) must list within three years. So for HDB, the IPO is both a financial strategy and a compliance checkbox.
Post-listing, HDB Financial Services will continue to function as a subsidiary of HDFC Bank, keeping the parent-child relationship intact. But the public listing is expected to bring transparency, accountability, and market-driven growth pressures — all of which could help sharpen the company’s competitive edge in a saturated lending environment.
From a valuation standpoint, HDB’s story is already attracting debate. As of January 2025, the company’s shares were valued at ₹1,240 — implying a price-to-book ratio (P/B) of 4.6x for FY26 forecasts. That’s notably higher than some of its peers, even those with stronger profitability and growth metrics. For instance, Bajaj Finance, with an expected 4% ROA and 34% growth in FY24, trades at 3.8x FY26E P/BV. Shriram Finance, with a 3% ROA outlook, is priced even more conservatively. So the premium on HDB may reflect investor belief in its long-term potential — or just IPO season optimism.
Still, there’s no denying the shift in mood. What was once a quiet corner of the unlisted market has now become one of its hottest tickets. With the IPO now firmly on the horizon and retail chatter reaching fever pitch, HDB Financial Services is looking less like a sleeper stock and more like a potential blockbuster.
Whether you’re in it for the long run or the listing pop, this is one ride that’s picking up speed.
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