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HDB Financial Services Limited IPO
HDB Financial Services Limited made its initial public offering (IPO) between June 25 and June 27, 2025. The initial public offering (IPO) comprises a main-board issuance of 16,89,18,918 equity shares, each with a face value of 10, totalling 12,500 crore. A lot size of 20 shares was offered, and the IPO price range was set at ₹700–740 per share. It consists of a new 2,500 crore issuance and a 10,000 crore sale offer from the promoter, HDFC Bank.
Company Background
HDB Financial Services is a large non-banking financial company (NBFC) in India and a subsidiary of HDFC Bank, which is one of the largest privately owned lenders in India. By March 31, 2024, it had a total gross loan book of 902.2 billion, which placed it as the ninth-largest retail-oriented NBFC in terms of loan book size. The company is also a strong percentage and this provides it with brand equity and access to low-cost funds.
Operations & Product Range
Facility & Production
HDB Financial Services has an extensive omni-channel platform of more than 1,700 branches in 31 states, 140,000+ retailer-dealer points of contact, 80+ OEM relationships, and expanding fintech relationships. It has more than 80 percent of its branches in semi-urban or rural locations and targets underbanked and underserved markets.
Brands & Market Presence
The company has a customer base of about 17.5 million customers with a CAGR of 28.22%. It has established itself well in the urban and semi-urban markets through a phygital (physical + digital) model, using advanced technology, AI and data analytics to simplify operations and credit management.
Revenue Channels
HDB Financial Services earns its revenue mainly by interest income on its diversified loan portfolio that comprises:
- Enterprise Lending (40% of loan book): Secured and unsecured loans to MSMEs.
- Asset Finance (37%): Secured loans to commercial vehicles, equipment and tractors.
- Consumer Finance (23%): Secured and unsecured personal loans, consumer loans, and vehicle loans.
The company also enjoys the efficiencies of cross-selling and digital onboarding, maximizing customer lifetime value.
Management & Shareholding
Promoters & Shareholding
HDB Financial Services is promoted by HDFC Bank which owns around 94.04 percent of the pre-IPO equity shares, which are 750,596,670 shares. The IPO also has an offer of sale by HDFC Bank, which has diluted its stake after the IPO.
Board Members
Although the particulars of particular board members are not included in the search results, the company is reputed to have a very experienced leadership team with high industry knowledge, which is backed by the strategic support of HDFC Bank.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
HDB Financial Services Limited IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
HDB Financial Services Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | June 25, 2025 to June 27, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | ₹700 to ₹740 per share |
| Lot Size | 20 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 16,89,18,918 shares (aggregating up to ₹12,500.00 Cr) |
| Fresh Issue | 3,37,83,783 shares (aggregating up to ₹2,500.00 Cr) |
| Offer for Sale | 13,51,35,135 shares of ₹10 (aggregating up to ₹10,000.00 Cr) |
| Net Offered to Public | 16,89,18,918 shares (aggregating up to ₹12,500.00 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 79,39,63,540 shares |
| Share Holding Post Issue | 82,77,47,323 shares |
HDB Financial Services Limited IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Wed, Jun 25, 2025 |
| IPO Close Date | Fri, Jun 27, 2025 |
| Tentative Allotment | Mon, Jun 30, 2025 |
| Initiation of Refunds | Tue, Jul 1, 2025 |
| Credit of Shares to Demat | Tue, Jul 1, 2025 |
| Tentative Listing Date | Wed, Jul 2, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 27, 2025 |
HDB Financial Services Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 20 | ₹14,800 |
| Retail (Max) | 13 | 260 | ₹1,92,400 |
| S-HNI (Min) | 14 | 280 | ₹2,07,200 |
| S-HNI (Max) | 67 | 1,340 | ₹9,91,600 |
| B-HNI (Min) | 68 | 1,360 | ₹10,06,400 |
HDB Financial Services Limited IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| 94.32% | 74.19% |
Competitive Strength:
- ● The customer base is large with fast growth and focuses on underbanked segments.
- ● A diversified loan portfolio where no one product constitutes more than 25 percent of the loan book.
- ● Streamlined digital onboarding and loan disbursement.
- ● Data-driven credit underwriting and collections and advanced technology.
- ● Good parentage of HDFC Bank offers brand trust and cheap capital.
- ● Wide pan-India presence and strong phygital network.
HDB Financial Services Limited IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31-Mar-25 | 1,08,663.29 | 16,300.28 | 2,175.92 | 14,936.50 | 87,397.77 | |||||||||||||||||||||||||||||||||||
| 31-Mar-24 | 92,556.51 | 14,171.12 | 2,460.84 | 12,802.76 | 74,330.67 | |||||||||||||||||||||||||||||||||||
| 31-Mar-23 | 70,050.39 | 12,402.88 | 1,959.35 | 10,436.09 | 54,865.31 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 14.72% |
| Debt/Equity | 5.85 |
| Price to Book Value | 3.72 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 27.41 | 26.29 |
| P/E (x) | 27 | 28.15 |
IPO Objectives
The new issue proceeds of 2,500 crore will be mainly utilized to increase the Tier-I capital base of the company to fulfill future capital needs as the lending activity increases. Some of the money will also be used in IPO related expenses. Regulatory compliance and growth require strengthening of the capital base. HDFC Bank has proposed to sell 10,000 crore through an offer of sale to liquidate a portion of its stake.
Conclusion
The IPO of HDB Financial Services is the biggest NBFC IPO of 2025, which indicates the solid market position, diversified portfolio, and growth opportunities of the company in the growing NBFC market of India. The IPO is supported by the strong brand and financial position of HDFC Bank, and has been positively recommended by analysts and is fairly valued against peers. The company has a good position to grow sustainably because it targets the underbanked segments and operates using technology.
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Frequently asked Questions (FAQs )
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1. What is the HDB Financial Services IPO price range?
The price range is between 700 and 740 per equity share.
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2. What is the IPO issue's overall size?
A fresh issuance of 2,500 crore and a selling offer of 10,000 crore make up the 12,500 crore total issue size.
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3. Who works as HDB Financial Services' marketer?
HDFC Bank is the promoter, holding more than 94% of the pre-IPO shares.
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4. Which are the key business divisions of HDB Financial Services?
Enterprise Lending, Asset Finance and Consumer Finance.
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5. What are the IPO goals?
To increase Tier-I capital to enable future growth and enable HDFC Bank to sell some of its shares.
