Post by : Jyoti Gupta

Photo:Reuters

HDB Financial Services, a company that gives loans to people and businesses, started trading on the stock market on Wednesday, July 2, 2025. The company had recently finished its IPO, which is when a company sells its shares to the public for the first time.

Its shares were priced at ₹740 during the IPO, but on the first day of trading, the price opened at ₹835 — about 13% higher than the original price. Later in the day, the stock went up a little more and was trading at ₹841.05. However, this was slightly lower than what people expected based on unofficial market signals.

The IPO was a big one, worth ₹12,500 crore. It included both fresh shares (newly created by the company to raise money) and existing shares sold by current shareholders. The money raised from the fresh shares, around ₹2,500 crore, will be used by the company to grow its business and strengthen its financial base.

The IPO got a lot of attention from investors. Big institutions subscribed over 55 times the shares reserved for them. Non-institutional investors subscribed nearly 10 times, and retail investors over 5 times.

HDB Financial started in 2007 and is owned by HDFC Bank. It is now the seventh-largest NBFC (non-banking financial company) focused on retail customers in India. As of March 2024, its total loans were worth ₹90,220 crore. The company gives loans through three areas: business loans, vehicle and equipment loans, and personal loans. It serves a large number of customers across the country.