HDB Financial Services is one of the leading, diversified retail-focused non-banking financial companies (“NBFCs”) in India in terms of Total Gross Loan book size, according to the CRISIL Report. The Company is categorized as an Upper Layer NBFC (NBFC-UL) by the RBI. They offer a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network.
HDB Financial Services, an Book Built Issue amounting to ₹ 12,500 Crores, consisting an Fresh Issue of 337.83 Lakh Shares worth ₹ 2,500 Crores and an Offer for Sale of 1,351.35 Lakh Shares totaling to ₹ 10,000 Crores. The subscription period for the HDB Financial Services IPO opens on June 25, 2025, and closes on June 27, 2025. The allotment is expected to be finalized on or about Monday, June 30, 2025, and the shares will be listed on the BSE & NSE with a tentative listing date set on or about Wednesday, July 02, 2025.
The Share Price Band of HDB Financial Services IPO is set at ₹ 700 to ₹ 740 per equity share. The Market Capitalisation of the HDB Financial Services Limited at IPO price of ₹ 740 per equity share will be ₹ 61,387.93 Crores. The lot size of the IPO is 20 shares. Retail investors are required to invest a minimum of ₹ 14,800, while the minimum investment for High-Net-Worth Individuals (HNIs) is 14 lots (280 shares), amounting to ₹ 2,07,200.
JM Financial Limited, IIFL Securities Limited, Nuvama Wealth Management Limited, BNP Paribas, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited, Morgan Stanley India Company Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities (India) Private Limited and UBS Securities India Private Limited are the book running lead manager of the HDB Financial Services IPO, while MUFG Intime India Private Limited is the registrar for the issue.
HDB Financial Services LimitedIPO GMP Today
The Grey Market Premium of HDB Financial Services Limited IPO is expected to be ₹ 0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.
HDB Financial Services LimitedIPO Live Subscription Status Today: Real-Time Update
As of 07:00 PM on 27 June, 2025, the HDB Financial Services Limited IPO live subscription status shows that the IPO subscribed 16.69 times on Final Day of subscription period. Check the HDB Financial Services IPO Live Subscription Status Today at BSE.
HDB Financial Services IPO Anchor Investors Report
HDB Financial Services has raised ₹ 3,368.99 Crores from Anchor Investors at a price of ₹ 740 per shares in consultation of the Book Running Lead Managers. The company allocated 4,55,27,026 equity shares to the Anchor Investors. Check Full List of HDB Financial Services Anchor Investor List.
Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion. Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO.
Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion.
HDB Financial Services Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online HDB Financial Services IPO allotment date is 30 June, 2025, Monday. HDB Financial Services IPO Allotment will be out on 30th June, 2025 and will be live on Registrar Website from the allotment date. Check HDB Financial Services IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select HDB Financial ServicesLimited IPO from the dropdown list of IPOs
- Enter your application number, PAN, or DP Client ID
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.
Objectives of HDB Financial Services LimitedIPO
HBD Financial Services proposes to utilise the Net Proceeds towards the following objects: 1. Augmentation of the Company’s Tier – I Capital base to meet the Company’s future capital requirements including onward lending under any of their Company’s business verticals i.e. Enterprise Lending, Asset Finance and Consumer Finance
HDB Financial Services is one of the leading, diversified retail-focused non-banking financial companies (NBFCs) in India, ranked by Total Gross Loan Book size (CRISIL Report). Categorized as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI), the company operates across three verticals: Enterprise Lending, Asset Finance, and Consumer Finance.
Established in 2007 as a subsidiary of HDFC Bank Limited, India’s largest private sector bank by total assets (₹36,880.7 billion as of September 30, 2024), HDB Financial Services benefits from brand strength and institutional governance while functioning independently across sourcing, underwriting, operations, and risk management.
It maintains one of the largest and fastest growing customer franchises in India, with 17.5 million customers as of September 30, 2024, growing at a CAGR of 28.22% since March 2022. The company primarily serves underserved and underbanked low- to middle-income households, including salaried individuals, self-employed professionals, and small business owners.
The loan book is highly granular, with the top 20 customers contributing less than 0.36% of Total Gross Loans. The distribution strategy follows a “phygital” model, integrating 1,772 branches across 1,162 towns in 31 States and Union Territories, with 80% of branches outside India’s top 20 cities, supported by over 140,000 dealer and retailer touchpoints and partnerships with 80+ OEMs and brands.
Underwriting follows a hybrid model: centralized systems for small-ticket, short-tenure consumer loans, and localized assessments for larger, long-tenure loans under Enterprise Lending and Asset Finance. With seasoned loan performance through multiple credit cycles and tech-enabled processes, the company consistently maintains strong asset quality and low credit costs amid rapid growth.
As of March 31, 2025, the company have total 60,432 permanent employees. The Bankers to the Company are State Bank of India and HDFC Bank Limited.
INDUSTRY ANALYSIS
Industry Overview: NBFC Sector in India
Systemic Credit Trends
Corporate credit, forming about two-thirds of systemic credit, heavily influences overall credit growth. In FY21, credit growth dropped to 6.3% due to economic slowdown and increased risk aversion among lenders. However, retail credit proved resilient, growing 9% in FY21 and 13% in FY22, outpacing non-retail segments.
Systemic credit rose 10.5% YoY in FY22, reaching ₹161 trillion, driven by increased government spending, private investments, and a rebound in business activity. The upward trend continued with 12.8% growth in FY23 and a healthy 14.1% in FY24, supported by robust retail disbursements, especially in housing and vehicle loans, and demand from NBFCs and trade segments.
Retail Credit Outlook
Retail credit, covering home, auto, gold, education, personal loans, credit cards, and microfinance, reached ₹75 trillion in FY24. It expanded at a 15% CAGR between FY19 and FY24. After a dip during the pandemic (FY21 growth of ~9%), retail credit rebounded, achieving 22% growth in FY23 and 20% in FY24 due to rising consumption and private bank activity.
Retail credit is projected to grow at 14-16% CAGR from FY24 to FY27. However, risk weight adjustments by RBI (Nov 2023), elevated inflation, and rising interest rates may temper this growth.
Role of NBFCs
While banks dominate India’s financial ecosystem, NBFCs play a critical role by reaching underbanked segments and customers lacking formal credit histories or adequate collateral. Their focus on niche retail lending has enhanced financial inclusion in semi-urban and rural areas.
MSME Sector in India: Overview and Financing Landscape
Sector Significance
The MSME sector has become a key growth driver of the Indian economy, with ~70 million enterprises as of FY22. It plays a pivotal role in employment generation, regional industrialisation, and equitable wealth distribution.
MSMEs contributed 29.2% to India’s GDP in FY22, with a target to reach 40-50% by FY30. They also account for ~45.7% of total exports as of FY24. Employment recorded via UDYAM registrations stood at 196 million as of October 2024.
Revised definitions in 2020 (based on turnover and investment thresholds) and the inclusion of traders under MSME classification in 2021 expanded eligibility for financial benefits and formal sector inclusion.
MSME Credit Gap
Despite their importance, MSMEs face significant credit access challenges. As per the IFC's 2018 report, formal credit addressed just 16% of the ₹69.3 trillion credit demand in FY17, with a ₹58.4 trillion gap filled by informal sources (charging 30–60% interest).
Post-COVID disruptions and limited eligibility under government schemes like ECLGS have widened the credit gap further. By FY24, total credit demand from MSMEs was estimated at ₹138 trillion, with only 25% met through formal channels. The current credit gap is projected at ₹103 trillion.
Addressable Demand and Opportunity
After excluding new, unviable, or non-seeking micro MSMEs, the addressable credit demand stood at ₹67.5 trillion in FY24. Formal credit covered ₹35 trillion, leaving a gap of ₹32.5 trillion that financial institutions can target with tailored offerings.
Improved bank support, government incentives, tech integration, and data-driven credit assessments are enabling more MSMEs—especially new-to-credit ones—to access formal financing. The increased uptake of UDYAM registrations is also expanding credit eligibility.
Post-Pandemic Recovery and Credit Growth
MSME revenues and credit uptake rebounded post-pandemic. In FY23, SME revenue grew 11%, while MSME credit expanded by 30%. This momentum continued in FY24, driven by rising demand and greater lender focus, indicating growing confidence in the segment.
Conclusion
India’s NBFC and MSME financing landscape is undergoing a transformation. With systemic credit growth rebounding and retail credit remaining strong, NBFCs have a significant role in deepening financial inclusion. The MSME sector, though constrained by a persistent credit gap, presents a high-growth opportunity for lenders willing to innovate and bridge the gap using digital tools and inclusive frameworks.
BUSINESS STRENGTHS
1. Highly Granular Retail Loan Book with Underbanked Focus
Among India’s largest and fastest-growing customer franchises with 17.5 million customers as of September 30, 2024, growing at a CAGR of 28.22% since March 2022. Strong alignment with government financial inclusion efforts, targeting underbanked, low- to middle-income segments.
2. Diversified and Seasoned Lending Portfolio
A robust portfolio of 13 lending products across Enterprise Lending, Asset Finance, and Consumer Finance, catering to business, personal, and consumption-driven credit needs. Offers income-generating, lifestyle, and working capital solutions. Also provides fee-based services including BPO and insurance product distribution.
3. Tailored, Pan-India Omni-Channel Distribution
A digitally enabled "phygital" network, comprising internal and external distribution systems, covering all regions of India with no single region accounting for more than 35% of the loan book. Focused expansion beyond metro cities to tap fragmented, underpenetrated markets.
4. Advanced Technology and Analytics Platform
A comprehensive tech infrastructure enhancing customer sourcing, onboarding, underwriting, operations, and collections. Drives higher efficiency, productivity, and asset quality while lowering cost-to-serve across the business lifecycle.
5. High-Quality, Diversified Liability Franchise
Backed by AAA (Stable) credit ratings from CRISIL and CARE—the highest possible rating for an NBFC in India. Ensures access to low-cost, stable funding, with an average cost of borrowing at 7.53% as of March 31, 2024, among the lowest in the sector.
6. Sustainable Financial Performance Total Gross Loan Book expanded from ₹613.3 billion (FY22) to ₹986.2 billion (Sep 2024), at a CAGR of 20.93%. Interest income grew at 15.50% CAGR from FY22 to FY24, while fee income rose at 29.42% CAGR during the same period, driven by insurance distribution and value-added services.
7. Experienced Leadership and Professional Governance
A leadership team with over 25 years of sector experience, many with long-standing tenures at the company. The 11-member Board includes 9 independent directors, bringing cross-functional expertise and ensuring sound corporate governance.
8. Strong Parentage and Brand Equity of HDFC Bank
A subsidiary of HDFC Bank, India’s largest private sector bank with ₹36.88 trillion in assets as of September 30, 2024. As promoter, HDFC Bank holds 94.36% equity (fully diluted basis), providing brand strength, institutional backing, and consumer trust.
BUSINESS STRATEGIES
1. Product Diversification to Broaden Customer Reach
Focused on expanding and enhancing a diverse portfolio of lending products to address evolving customer lifecycle needs. Product innovation—such as automated underwriting for Two-Wheeler Loans—enables access to broader geographies and underbanked segments, while supporting stronger cross-sell potential across business verticals.
2. Expansion of Pan-India Omni-Channel Distribution
Aims to strengthen a hybrid distribution model, comprising 1,772 branches across 1,162 towns in 31 States/UTs, supported by digital channels, 80+ OEM/brand partnerships, and a network of 140,000+ dealer and retailer touchpoints. Plans include opening new branches and expanding third-party alliances to ensure comprehensive national reach.
3. Continued Investment in Technology and AI
Committed to deepening integration of data analytics, machine learning, and generative AI across the lending lifecycle—from sourcing and onboarding to collections. These tools are key to improving customer experience, cross-sell opportunities, operational efficiency, and employee productivity, while also enhancing digital security frameworks.
4. Funding Diversification for Cost Efficiency
Strategy includes expanding the lender base to optimize leverage and borrowing costs. As of September 30, 2024, USD 1 billion raised through ECBs, alongside funding from banks, mutual funds, insurance firms, pension funds, and others. Instruments include term loans, NCDs, subordinated and perpetual bonds, and commercial papers.
5. Strengthening Risk Management and Credit Underwriting
Enhancing an already robust risk framework through customized credit assessment, improved underwriting models, and tech-enabled collections processes. Emphasis on maintaining high asset quality while scaling, based on a 17-year track record and deep insight into customer behavior across business verticals.
6. Talent Development and Cultural Alignment
Prioritizing recruitment, continuous employee training, and retention strategies to foster a high-performing workforce. Organizational culture focuses on growth with prudence and sustainability, aiming to build a long-term, resilient consumer lending franchise that benefits customers, partners, employees, and communities.
BUSINESS RISK FACTORS & CONCERNS
1. Macroeconomic Dependency
Entire operations, customer base, and revenue are India-centric. Any adverse changes in the Indian macroeconomic environment could significantly affect business performance, cash flows, and financial condition.
2. Brand Dependency on HDFC Bank
Operates under a trademark license agreement with HDFC Bank, which permits the use of the HDFC Bank logo. Any reputational damage to the HDFC Bank brand or termination of the agreement could impair brand recognition and affect business operations and financial outcomes.
3. Regulatory Risk from RBI Inspections
Subject to regular inspections by the Reserve Bank of India (RBI) under the RBI Act, 1934. Non-compliance with RBI’s observations could lead to penalties, operational restrictions, or cancellation of the NBFC license.
4. Capital Adequacy Compliance Risk
Required to maintain a minimum capital adequacy ratio (CAR) of 15%, with Tier I capital not below 10%, as mandated by RBI's Scale-Based Regulation for NBFCs. Although current CAR levels meet regulatory norms, any future non-compliance could materially impact operations and financial stability.
5. High Exposure to New-to-Credit Borrowers
A significant portion of the loan book is extended to new-to-credit (NTC) borrowers, who lack formal credit histories. These borrowers, constituting 12.02% of the portfolio as of September 30, 2024, present a higher risk of default due to the limited ability to assess creditworthiness and greater vulnerability to economic stress.
HDB Financial Services faces several business risks linked to macroeconomic exposure, regulatory compliance, dependency on brand association with HDFC Bank, and the credit risk involved in lending to new-to-credit customers. These vulnerabilities could impact operational stability, brand perception, capital adequacy, and asset quality.
HDB Financial Services Limited Financial Information (Restated Consolidated)
Amount in (₹ in Million)
Period Ended
Mar 31, 2025
Mar 31, 2024
Mar 31, 2023
Reserve of Surplus
1,50,239.70
1,29,496.30
1,06,455.70
Total Assets
10,86,632.90
9,25,565.10
7,00,503.90
Total Borrowings
4,19,288.90
3,38,313.80
2,42,278.00
Fixed Assets
2,431.20
1,625.30
1,223.70
Cash
9,504.60
6,478.50
3,959.00
Net Borrowing
4,09,784.30
3,31,835.30
2,38,319.00
Revenue
1,63,002.80
1,41,711.20
1,24,028.80
EBITDA
95,123.70
83,141.30
62,511.60
PAT
21,759.20
24,608.04
19,593.50
EPS
27.32
31.04
24.76
Note 1:- RoAE & RoNW calculation in KPI is based on 31st Mar, 2025 Data, given in RHP. Note 2:- Pre EPS and Post EPS calculation in KPI is based (Profit/Loss for the Year) on 31st Mar, 2025 Data, given in RHP. Note 3:- RoNW calculation in KPI is based on 31st Mar, 2025 Data, given in RHP. Note 4:- Price to Book Value calculation in KPI is based on Cap Price Post Issue, given in FINANCIAL EXPRESS.
HBD Financial Services is one of the leading, diversified retail-focused non-banking financial companies (“NBFCs”) in India in terms of Total Gross Loan book size, according to the CRISIL Report. The Company is categorized as an Upper Layer NBFC (NBFC-UL) by the RBI. They offer a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network.
The Company's Promoter is HDFC BANK LIMITED.
The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 163,002.80 Million, ₹ 141,711.20 Million and ₹ 124,028.80 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 95,123.70 Million, ₹ 83,141.30 Million and ₹ 62,511.60 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 21,759.20 Million, ₹ 24,608.04 Million and ₹ 19,593.50 Million respectively. This indicates a steady growth in financial performance.
The Company Key Performance Indicates the pre-issue EPS of ₹27.32and post-issue EPS of ₹ 26.23 for FY24.The pre-issue P/E ratio is 27.08x, while the post-issue P/E ratio is 28.21x against the Industry P/E Ratio is 23x. The company's ROAE for FY24 is 14.72% and RoNW is 14.72%. These metrics suggest that the IPO is fully priced.
The Grey Market Premiu (GMP) of HDB Financial Services showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the HDB Financial Services Limited IPO for Listing gain.
Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com
About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.
163,002.80 Million, ₹ 141,711.20 Million and ₹ 124,028.80 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 95,123.70 Million, ₹ 83,141.30 Million and ₹ 62,511.60 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 21,759.20 Million, ₹ 24,608.04 Million and ₹ 19,593.50 Million respectively. This indicates a steady growth in financial performance.
The Company Key Performance Indicates the pre-issue EPS of ₹27.32and post-issue EPS of ₹ 26.23 for FY24.The pre-issue P/E ratio is 27.08x, while the post-issue P/E ratio is 28.21x against the Industry P/E Ratio is 23x. The company's ROAE for FY24 is 14.72% and RoNW is 14.72%. These metrics suggest that the IPO is fully priced.
The Grey Market Premiu (GMP) of HDB Financial Services showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the HDB Financial Services Limited IPO for Listing gain.
Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com
About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.
