HDB Financial Services, a prominent subsidiary of India's leading private bank HDFC Bank, made a strong and sustained stock market debut, with its shares extending gains for the second consecutive trading session. Following its robust listing on July 2, where it opened at ₹835 per share on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)—a significant 12.84% premium over its issue price of ₹740—the stock continued its upward momentum. On June 3, it saw a 4% rise, opening at ₹840.70 apiece on the BSE and reaching an intraday high of ₹870.50. By the close of its listing day, HDB Financial Services settled at ₹840.25 on NSE, commanding a 13.55% premium, and ₹840.90 on BSE, a 13.64% premium to its IPO price. This positive trajectory continued into Thursday, July 3, with shares climbing more than 6% to ₹891.65 on BSE, pushing its market capitalization to nearly ₹74,000 crore and marking an impressive 20.49% increase from its IPO price in just two trading sessions, surpassing several notable companies in market cap.

The initial public offering (IPO) of HDB Financial Services, which was open for subscription from June 24 to June 26, garnered substantial interest from investors. The IPO recorded an impressive overall subscription status of 16.69 times on its final bidding day, attracting bids worth ₹1.62 lakh crore. The company had set its price band at ₹700 to ₹740 per share. The IPO structure included a fresh issue of ₹2,500 crore and a significant offer for sale (OFS) of ₹10,000 crore from HDFC Bank. In total, HDB Financial successfully raised ₹12,500 crore. The net proceeds from the fresh issue are primarily intended to bolster the company's Tier-I Capital base, which will enable it to meet future capital requirements across its diverse business segments—Enterprise Lending, Asset Finance, and Consumer Finance—and to ensure ongoing compliance with the capital adequacy regulations set by the Reserve Bank of India (RBI) as its operations and assets expand. The OFS component led to HDFC Bank's stake in its subsidiary decreasing from 94.5% to 74.2%, with HDFC Bank raising ₹9,815 crore from the sale of 13.5 crore shares.

Incorporated in 2007 and headquartered in Ahmedabad, HDB Financial Services operates as a retail-focused non-banking financial company (NBFC). The company offers a wide array of lending products through its three core business verticals: enterprise lending, asset finance, and consumer finance, including personal, home, vehicle, and gold loans. Additionally, it provides crucial business process outsourcing (BPO) services to its parent, HDFC Bank. With an extensive distribution network of 1,680 branches, HDB Financial manages a substantial loan book of ₹1.07 lakh crore. This book is well-diversified, with vehicle finance constituting 43%, mortgage 24%, personal loans 24%, complemented by gold and enterprise loans. Prior to its listing, the company was aiming for a valuation of $7.1 billion.

Analysts and market experts have largely expressed positive sentiments regarding HDB Financial Services' performance and future prospects. Mahesh Ojha, Assistant Vice President of Research and Business Development at Hensex Securities, commended the impressive market debut and underscored the lender's robust fundamentals, citing low gross non-performing assets, an annual profit growth rate of 5.4%, and its extensive distribution network as indicators of significant growth potential. He views HDB Financial Services as a portfolio stock, advising investors to accumulate it on corrections during volatile market sentiments. Emkay Global Financial Services initiated coverage with a 'buy' rating and a target price of ₹900 even before its official listing, highlighting its highly diversified, extremely granular, and large-scale lending franchise, which serves over 19 million customers. Emkay noted the company's resilience across multiple credit cycles, including COVID, and its strategic bottom-up approach driven by skilled top management, emphasizing a focus on direct sourcing, remote areas, and low-to-mid-income groups with limited to no credit history.

The positive outlook is further supported by expectations of a favorable interest rate cycle, with frontloaded repo rate cuts anticipated to drive Net Interest Margin (NIM) expansion and credit cost moderation. This scenario, coupled with an improving growth outlook, positions HDB Financial well for enhanced profitability. Prashanth Tapse, Senior VP of Research at Mehta Equities, believes HDB Financial is strategically positioned to benefit from the Reserve Bank of India's liquidity push and India’s structural credit growth, recommending a long-term hold (3-5 years) for investors seeking a value-driven opportunity with defensive and growth characteristics. While interest income rose by 25%, NIMs did slip 40 bps to 7.85% due to higher borrowing costs, though this may reverse following RBI rate cuts. However, Dharan Shah, Founder at Tradonomy AI by Jamnadas Virji Group, expressed some reservations, considering the major portion of fundraising through OFS as a negative sign, leading to a somewhat subdued overall outlook despite the company's evident strengths.