Investors were taken by surprise as HDB Financial Services Ltd announced its IPO price band at ₹700–740 per share—significantly lower than expectations in the unlisted market. The pricing reflects a steep 66% discount compared to the stock’s current grey market value. At the upper end of the band, the company’s market capitalisation would stand at approximately ₹68,900 crore.
Shares of HDB Financial are currently trading around ₹1,250 in the unlisted space, down roughly 15% from their peak of ₹1,455 recorded in September 2024. Despite this correction, the stock had more than doubled—gaining over 115%—between January and September 2024.
This isn’t the first time a company has priced its IPO well below its unlisted market valuation. Earlier IPOs from companies such as Tata Technologies, AGS Transact, UTI Asset Management, and PB Fintech have also followed similar pricing strategies.
Market analysts warn investors not to rely solely on grey market pricing or IPO excitement when entering the unlisted segment. They point out that the unlisted space tends to be volatile and carries a higher level of risk. For long-term wealth creation, a cautious and well-informed approach is essential.
Some experts, speaking anonymously, noted that upcoming IPOs—such as those of Tata Capital and the National Stock Exchange (NSE)—may also be priced below their current unlisted values. They suggest that unlisted investments are best made two to three years before a company’s IPO, ideally at discounted valuations. Without such a pricing gap, the investment’s appeal is considerably reduced.
NSE shares have surged over 50% in the unlisted market in the past month alone and are now trading around ₹2,350 per share, delivering a remarkable return of over 300% since January 2024. Tata Capital has also seen strong gains, with its stock up more than 50% this year and currently valued at around ₹1,035 in the unlisted space.
The HDB Financial IPO will open for public subscription from June 25 to June 27. Bidding for anchor investors will begin on June 24. The basis of allotment is expected to be finalised on June 30, with refunds and share credit scheduled for July 1. The company is slated to list on the stock exchanges on July 2.
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Source: Moneycontrol.
