HDB Financial Services Limited, a retail-focused non-banking financial company (NBFC) and a subsidiary of HDFC Bank Limited, is all set to launch one of the most awaited public issues of the year. The HDB Financial IPO will open for subscription on June 25, 2025, and close on June 27, 2025.

The IPO is a book-building issue of ₹12,500 crore, comprising:

• Fresh issue of ₹2,500 crore

• Offer for sale (OFS) of ₹10,000 crore

The share price band, lot size, and number of shares are yet to be announced.

IPO Details

IPO Reservation Details

IPO Timeline

Promoter & Shareholding

• Promoter: HDFC Bank Limited

• Pre-Issue Shareholding: 94.36%

• Post-Issue Shareholding: To be updated after equity dilution

The IPO will help the company strengthen its capital base, enhance lending capacity, and partially provide an exit to existing shareholders through OFS.

About HDB Financial Services Limited

Incorporated in 2007, HDB Financial is a systemically important NBFC, offering lending and value-added BPO services.

Business Verticals:

1. Enterprise Lending

2. Asset Finance

3. Consumer Finance

Additionally, the company provides back-office support, collections, and sales services to HDFC Bank and distributes insurance products to its lending customers.

Distribution Network:

• 1,772 branches across 1,162 towns in 31 states and union territories

• Over 80% of branches are located outside India’s top 20 cities

• Partnerships with over 80 brands and OEMs

• Over 140,000 retailer and dealer touchpoints as of Sep 30, 2024

The company has a strong phygital model, combining physical branches with digital outreach.

Financial Performance

This indicates consistent growth in assets, net worth, and profits, with a healthy capital base and expanding loan book.

Key Performance Metrics (FY24)

These metrics suggest efficient capital use and strong lending discipline.

Lead Managers

The IPO is being managed by a strong consortium of 12 book running lead managers:

• JM Financial Ltd

• BNP Paribas

• BofA Securities India Ltd

• Goldman Sachs India

• HSBC Securities

• IIFL Capital

• Jefferies India

• Morgan Stanley India

• Motilal Oswal

• Nomura India

• Nuvama Wealth

• UBS Securities India

IPO Strengths

• Backed by HDFC Bank, one of India's most trusted financial institutions

• Strong omnichannel presence with extensive reach into non-metro India

• Growing loan book, rising profitability, and a high ROE of 19.55%

• Plays a critical role in financial inclusion by offering credit in underserved regions

• Diverse product mix across secured and unsecured retail lending

IPO Risks

• Price band, lot size, and valuation are still awaited

• High competition from banks, NBFCs, and fintech lenders

• Macroeconomic shocks may impact asset quality, particularly in retail lending

• Exposure to collection risk in unsecured loans

• The BPO business is reliant on HDFC Bank as a key client

Expected Valuation & Market Reaction

As the price band is still to be announced, final valuation metrics such as P/E ratio, market cap to revenue, and book value multiples are awaited.

However, considering HDFC Bank’s reputation and HDB’s recent profit surge, high investor interest is expected. GMP (Grey Market Premium) updates will become clearer closer to the IPO date.

Final Recommendation: Wait for Valuation

Given:

• Strong financials and growth

• Backing of HDFC Bank

• Scalable business model

But also:

• Absence of price band and lot size

• Lack of GMP data so far

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  Disclaimer:
  This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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