HDB Financial Jumps ₹100 Over IPO Price On Day 1: SEBI RA Mayank Singh Chandel Bullish On Long-Term Potential

HDB Financial Services, India’s largest IPO this year, made a stellar debut on the stock exchanges on Wednesday, listing at a 13% premium over its issue price of ₹740 per share. The stock opened at ₹830, touched a low of ₹827.15 and a high of ₹851.40, delivering a gain of over ₹100 from the IPO price on its first day. 

At the time of writing, HDB shares were trading at ₹842. 

The listing showed strong demand for the shares with buy orders of nearly 1.25 crore shares and sell orders of about 31 lakh shares. SEBI-registered analyst Mayank Singh Chandel noted that the sharp contrast between buy and sell orders reflected heavy demand and limited supply in the early trade. 

The ratio of buy to sell orders is over 4:1, showing that a large number of investors wanted to enter the stock on listing, which is a sign of positive sentiment and investor conviction.

What’s fueling this confidence? 

Chandel highlighted the various factors that is driving this optimism. As a subsidiary of HDFC Bank, HDB Financial Services benefits from the trust and reputation of the group.

The company also has a robust financial track record with a growing loan book and improving asset quality. While the stock listed at a premium valuation, Chandel noted that investors’ willingness to pay that price is indicative of its quality and brand value. 

Also, HDB saw a low float on listing day, which may have added fuel to buying interest, contributing to price strength, he said. 

What should investors do?

For short-term traders, Chandel advised waiting for the stock to establish a clear technical setup over the next few sessions before making any move. 

However, he believes that the long-term investors may consider entering even at current levels, given the strong listing, healthy demand, and the brand strength of the HDFC group. The early interest suggests that the stock could remain in focus for the foreseeable future, he concluded. 

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