HDB Financial Services IPO: HDFC Bank's unit to raise ₹12,500 crore at price band of ₹700-740; issue to open on June 25

The initial public offering (IPO) of HDB Financial Services, the non-banking financial company arm of HDFC Bank , will hit D-Street next week. The country’s seventh largest, diversified retail-focussed NBFC has set the price band at ₹700-740 per share, aiming to raise ₹12,500 crore at the upper end of the issue price. At this price band, the market capitalisation of HDB Financial is pegged at around ₹68,900 crore.

The Reserve Bank of India classified HDB Financial as an upper layer NBFC in 2022, mandating its public listing under the prevailing regulations. The deadline to list is September 2025. 

The IPO of HDB Financial is a combination of a fresh issue of 3.38 crore shares worth ₹2,500 crore and offer for sale (OFS) of 13.51 crore shares aggregating to ₹10,000 crore by promoter entity HDFC Bank, which currently holds over 94% stake in the NBFC arm.

This is going to be the largest IPO since Hyundai Motor India’s ₹27,000-crore issue last year and the biggest in the current calendar year. Also, this will be the first listing by a HDFC group entity after the merger of HDFC with HDFC Bank in July 2023. After listing, HDB Financial will compete with the likes of Bajaj Finance, Sundaram Finance, L&T Finance, Mahindra & Mahindra Financial Services, Cholamandalam Investment and Finance Company, and Shriram Finance.

The HDB Financial Services IPO will open for subscription on June 25 and close on June 27. The anchor book will open for a day on June 24, while the allotment of shares to eligible applicants is expected to be finalised on June 30, 2025. The tentative date for listing of its is July 2, 2025.

The lot size for the IPO is 20 and the minimum application amount required by retail investors is ₹14,000 for one lot.

HDB Financial intends to use the capital raised to augment its Tier I capital base to meet the company’s future capital requirements including onward lending under any of the its business verticals—enterprise lending, asset finance, and consumer finance.

According to the RHP filed with the Securities and Exchange Board of India, the company has reserved 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and the remaining 35% for retail investors. Under the retail portion, the company has reserved equity shares worth up to ₹20 crore for its employees, and equity shares aggregating up to ₹1,250 crore for HDFC Bank shareholders.

Established in 2007, HDB Financial Services Limited is a retail-focussed NBFC offering a wide portfolio of secured and unsecured loans, including personal loans, gold loans, business loans, and consumer durable financing. It also provides BPO services through its HDB Contact Centre.

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