Indira IVF Refiles DRHP to Launch ₹3,500 Crore IPO...
16 Jul, 2025
HDB Financial Services, the non-banking financial arm of HDFC Bank, is on the verge of receiving regulatory clearance from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO), which could raise up to ₹12,500 crore. The approval is expected in the coming days, paving the way for one of the largest IPOs in India's financial sector this year.
If successful, the HDB Financial Services IPO will be the largest ever for a shadow bank in India and the biggest IPO across all sectors since Hyundai Motor India’s ₹27,870 crore offering last year. This listing will test the resilience and appetite of Indian capital markets, which have seen significant activity in recent years.
The IPO is not just a strategic move but also a regulatory requirement. The Reserve Bank of India (RBI) has mandated that large non-banking financial companies (NBFCs) classified as "upper layer" must list on stock exchanges by September 2025. HDB Financial Services filed its draft red herring prospectus (DRHP) in November 2024, and the SEBI nod will allow it to meet this deadline.
The proposed issue size is approximately ₹12,500 crore (about $1.5 billion), making it a landmark fundraising event. The IPO will comprise both a fresh issue and an offer for sale, with the fresh capital primarily earmarked for augmenting HDB’s Tier I capital base. This will support future growth, meet capital adequacy requirements, and fund onward lending as the company expands. A portion of the proceeds will also cover IPO-related expenses.
HDB Financial Services reported a mixed set of financials for the March 2025 quarter. Net profit fell 19% year-on-year to ₹531 crore, despite a 16% growth in total revenue to ₹4,266 crore and an 18% rise in interest income to ₹3,623 crore. The profit decline was attributed to higher operating expenses, which surged 28% over the previous year. The company remains one of India’s fastest-growing NBFCs, with a strong presence in underserved and underbanked segments, a customer base of over 17.5 million, and a network of 1,772 branches across 31 states and union territories.
HDFC Bank currently holds a 94.6% stake in HDB Financial Services and will retain majority control post-listing. The IPO is expected to attract significant interest from institutional and retail investors, given HDB’s strong parentage, robust technology backbone, and focus on credit to underserved markets. The company is also considering a pre-IPO placement in consultation with lead book-running managers.
Following SEBI approval, HDB Financial Services will finalize the IPO price band, lot size, and other details in consultation with its advisors. The shares will be listed on both the BSE and NSE, with the IPO expected to open for subscription later in 2025. The listing is likely to set a benchmark for future NBFC IPOs, including the anticipated Tata Capital offering, and could signal renewed momentum in the Indian IPO market.
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