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14 Jun, 2025
India’s securities markets are on the verge of a significant boost as the Securities and Exchange Board of India (SEBI) is expected to clear the initial public offerings (IPOs) of HDB Financial Services, Hero FinCorp, and Vikram Solar in the coming weeks. These approvals could mark a robust mid-2025 for the Indian IPO market, with major players from the financial services and renewable energy sectors preparing to tap public capital.
The most anticipated among the trio is the ₹12,500 crore IPO of HDB Financial Services, a subsidiary of HDFC Bank. This offering stands to become India’s largest IPO by a non-bank lender, surpassing previous records except for Tata Capital’s proposed ₹15,000 crore issue, which is still awaiting clearance. The HDB Financial IPO will comprise a ₹2,500 crore fresh issue and a ₹10,000 crore offer for sale by HDFC Bank, which currently holds a 94.36% stake in the company.
This listing aligns with the Reserve Bank of India’s directive for upper-layer Non-Banking Financial Companies (NBFCs) to go public. HDFC Bank will also be required to reduce its stake in HDB Financial to below 20% to comply with the RBI’s structural separation norms. The IPO had faced delays due to SEBI’s extended scrutiny over a potential violation of the Companies Act, 2008, regarding a private placement of shares to over 50 HDFC Bank employees. Sources indicate that these compliance concerns have now been resolved, paving the way for SEBI’s approval.
Hero FinCorp, the financial services subsidiary of Hero MotoCorp and backed by ChrysCapital, is also close to receiving SEBI’s green light. The company filed its draft red herring prospectus (DRHP) in July 2024, aiming to raise ₹3,668 crore, comprising a ₹2,100 crore fresh issue and a ₹1,568 crore offer for sale by existing investors.
The IPO proceeds are earmarked for strengthening the company’s Tier-I capital base, supporting future lending activities. Hero FinCorp, established in 1991, offers a range of products including two-wheeler financing, affordable housing loans, education loans, and SME lending. Like HDB Financial, Hero FinCorp’s IPO faced regulatory scrutiny, but sources suggest that the path is now clear for approval.
Vikram Solar, one of India’s largest manufacturers of solar photovoltaic modules, is set to raise ₹1,500 crore through its IPO. The offering consists of a fresh issue of shares and an offer for sale of 1.74 crore equity shares by promoters, including Gyanesh Chaudhary, Vikram Capital Management, and Anil Chaudhary.
The company may also consider a pre-IPO private placement of up to ₹300 crore, which would reduce the size of the fresh issue accordingly. Vikram Solar’s public listing is expected to further energize the renewable energy sector’s access to capital markets.
The imminent approval of these three IPOs signals renewed momentum in India’s capital markets, following a period of regulatory scrutiny and compliance adjustments. If cleared, HDB Financial’s issue would be the largest since Hyundai Motor India’s ₹27,870 crore IPO last year, underscoring the scale and investor appetite for top-tier financial and renewable energy companies.
These IPOs also reflect evolving regulatory requirements, particularly for NBFCs classified as “upper layer” by the RBI, which are now mandated to go public. The resolution of compliance issues for both HDB Financial and Hero FinCorp demonstrates SEBI’s rigorous oversight and the companies’ commitment to meeting governance standards.
With SEBI’s approvals expected soon, the Indian IPO landscape is poised for significant activity in the second half of 2025. Investors and market watchers will be closely monitoring the progress of these listings, which could set benchmarks for future offerings in both financial services and renewable energy sectors.
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