Shares of HDB Financial Services slipped below their ₹740 IPO issue price for the first time on August 4, 2025, dropping 1.4% to reach a new 52-week low of ₹738.20 on the BSE
This signals a notable reversal from its strong debut last month, when it listed at approximately ₹835, a premium gain of nearly 13% above the IPO price
What Led to the Decline?
- The stock has corrected sharply—down 17% from its high of ₹891.65 touched on July 2
- Investor sentiment cooled following the Q1 FY26 earnings release showing:
- A minor 2.4% decline in net profit to ₹568 crore
- AUM up 14–14.7% YoY, but disbursements down by ~8%
- Slight deterioration in asset quality with Gross NPA rising to ~2.56% and credit cost edging up to 2.5%
IPO & Listing Backdrop
- The ₹12,500 crore IPO, priced at ₹700–740, was heavily oversubscribed (over 16× overall, ~55× QIB portion) and raised both fresh equity and through offer-for-sale (OFS)
- Listing on July 2 saw the stock surge to ₹849.85 intraday, valuing the NBFC at USD 8.2 billion
Broader Unlisted Market Implications
The IPO price range — well below grey market price expectations of ₹1,000–1,200 — triggered revaluation across high-profile unlisted stocks like NSE, NSDL, and Tata Capital, which dropped roughly 5–18% in pre‑IPO trade, fueling investor anxiety about valuations
What Happens Next?
With post-lock-in share supply rising—~23 million shares (~3% of equity) became freely tradable by late July—liquidity increased and may contribute to volatility or further price pressure The Economic Times.
Analysts continue to monitor HDB’s financial clarity, especially its ability to:
- Stabilise asset quality
- Boost disbursement momentum
- Manage credit cost expansion
Summary Table
| Detail | Data |
|---|---|
| IPO Issue Price | ₹740 |
| Listing Price | ~₹835 (+12.8%) |
| Peak Share Price | ~₹891.65 on July 2 |
| Current Share Price | ₹738.20 (August 4, 2025) |
| Drop from High | ~17% |
| Key Q1 Issues | Fall in profit, subdued disbursals, rising NPAs |
| Free Float Expansion | 23M shares freed post lock-in expiry |
