HDB Financial Services Limited, a leading non-banking financial company (NBFC) and a subsidiary of HDFC Bank, is set to launch its much-anticipated ₹12,500 crore Initial Public Offering (IPO) on June 25, 2025, making it one of the biggest IPOs of the year.

The IPO will be open for subscription from June 25 to June 27, with allotment expected around July 1, and listing likely in the first week of July 2025 on both BSE and NSE.

IPO Details and Structure

The HDB Financial IPO is a pure Offer for Sale (OFS) by HDFC Bank, aiming to dilute part of its stake and unlock value. There is no fresh equity issuance, meaning the entire ₹12,500 crore will go to the selling shareholder, i.e., HDFC Bank.

• Issue Size: ₹12,500 crore

• Price Band: ₹700 to ₹740 per equity share

• Lot Size: Likely to be 20–25 shares (awaiting confirmation)

• Retail Discount: May be available for eligible retail investors

• IPO Type: 100% Offer for Sale (OFS)

• Lead Managers: Kotak Mahindra Capital, ICICI Securities, Morgan Stanley, JM Financial, BofA Securities

• Registrar: Link Intime India Pvt. Ltd.

This IPO will comply with RBI’s requirement for HDFC Bank to reduce stake in non-core subsidiaries and is seen as a key step towards regulatory restructuring after the HDFC-HDFC Bank merger.

About HDB Financial Services

HDB Financial Services is a systemically important non-deposit taking NBFC, primarily focused on:

• Retail loans (personal loans, consumer durable loans, auto and two-wheeler loans)

• Commercial vehicle finance

• Gold loans, SME lending, and loan against property (LAP)

• B2B and B2C services including collections, insurance broking, and loan servicing

With over 1,600 branches across India, and a growing customer base in semi-urban and urban centers, HDB has become a key player in India’s retail credit and lending space.

Financial Highlights

HDB Financial has shown consistent performance despite industry-wide challenges, including:

• Total Assets (FY24): ₹78,425 crore

• Revenue (FY24): ₹13,960 crore

• Net Profit (FY24): ₹2,150 crore

• Net NPA: 1.5%

• Return on Equity (ROE): 13.4%

• Capital Adequacy Ratio: 20.2%

Its loan book is diversified, with strong focus on asset quality and conservative provisioning, reflecting sound risk management practices.

IPO Objectives and Market Expectations

Although the IPO is not raising fresh capital, it serves several purposes:

• Regulatory compliance for stake dilution

• Valuation unlocking for HDFC Bank shareholders

• Public market visibility ahead of potential listing of other group entities

• Market discipline and governance improvement through public ownership

Market analysts expect this IPO to be well-received, owing to:

• Strong parentage (HDFC Bank)

• Robust fundamentals

• Consistent profitability and loan book quality

• Track record of growth in underserved lending segments

Grey Market Buzz and Sentiment

As per early unofficial sources, Grey Market Premium (GMP) for HDB Financial IPO is reportedly around ₹90–₹100, suggesting a potential 12–14 percent listing gain. However, final GMP trends will solidify closer to the listing date based on investor sentiment, QIB response, and global market conditions.

Analyst View and Peer Comparison

HDB Financial will be compared with peers like Bajaj Finance, Cholamandalam Finance, and Shriram Finance. While it may command a slightly lower P/E valuation initially due to the OFS structure, the company is well-positioned for long-term growth, particularly in the retail and digital lending space.

Key differentiators:

• Backed by India’s most valuable private bank

• Strong rural and semi-urban outreach

• Clean asset book and high provisioning buffers

• Potential for tech-led expansion under parent ecosystem

Conclusion

The ₹12,500 crore IPO of HDB Financial Services is poised to be a major capital market event in 2025, with a June 25 launch and listing expected in early July. The offering will give investors a chance to own part of one of India’s most stable and promising NBFCs, backed by HDFC Bank’s ecosystem and governance standards.

Recommendation: Strong long-term play. Investors may consider subscribing, particularly for wealth creation via exposure to India’s credit growth story.

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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