India’s HDB Financial Services jumped more than 13% in its trading debut on Wednesday, notching the non-bank lender a valuation of $8.2 billion at day’s high, as investors bet on long-term growth prospects in the world’s most populous country.
HDB‘s $1.5 billion IPO is the largest in India this year so far and also the biggest ever by a non-bank lender.
The stock rose to as much as 849.85 rupees in Mumbai compared with its offer price of 740 rupees. The shares were last trading at 833.55 rupees while India’s Nifty 50 index was marginally down.
“HDB Financial, with its strong parentage, has recorded a very encouraging listing, and its performance will definitely lend more courage to IPO hopefuls to test the waters of public markets,” said Mahesh Ojha, assistant vice president, research and business development at Hensex Securities.
Ojha sees a “long runway for expansion” for the lender, citing “resilient fundamentals” such as low gross non-performing assets, an annual profit growth rate of 5.4% and a wide distribution network.
The firm, a unit of India’s top private lender HDFC Bank, gives out personal, home, vehicle and gold loans, among other offerings. It had targeted a valuation of $7.1 billion.
Demand at the IPO was boosted by qualified institutional buyers such as foreign investors and mutual funds, whose bids were 55 times the shares reserved for them.
India’s IPO market is witnessing an upswing after a slow start to the year.
As many as 143 IPOs are being planned, worth a potential $26 billion, according to IPO tracker PRIME Database.
Firms have raised $5.86 billion through IPOs in 2025, maintaining India’s position as the world’s second-largest IPO market after the US, according to LSEG data.
At HDB Financial‘s IPO, parent HDFC Bank sold 100 billion rupees of shares last week while the firm issued fresh stock worth 25 billion rupees. In all, the IPO garnered bids worth $19 billion. HDB also raised $321 million from anchor investors such as BlackRock.
The strong response indicates renewed investor confidence in Indian equities, thanks to easing global trade tensions and a recovery in the benchmark indexes, analysts said.
Reuters
