HDB Financial IPO is scheduled to open on June 25, 2025, and will close on June 27, 2025. This is a Book Built Issue, through which the company aims to raise approximately ₹12,500 crores. The IPO comprises a fresh issue of ₹2,500 crores and an offer for sale (OFS) of up to 13,51,35,135 equity shares with a face value of ₹10 each.
The price band for the HDB Financial IPO is set at ₹700 to ₹740 per share. The retail investor quota is 35%, while Qualified Institutional Buyers (QIBs) have a 50% reservation, and High Net-worth Individuals (HNIs) have 15%.
The IPO listing is expected on BSE and NSE on July 2, 2025, while the allotment date is set for June 30, 2025.
In terms of financial performance, HDB Financial reported a revenue of ₹16,300.28 crores in FY 2025, compared to ₹14,171.12 crores in FY 2024. However, the net profit saw a decline, with ₹2,175.92 crores in 2025 against ₹2,460.84 crores in 2024.
HDB Financial IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | June 25, 2025 |
| IPO Close Date: | June 27, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹700 to ₹740 Per Share |
| Issue Size: | Approx 12,500 Crores |
| Fresh Issue: | Approx ₹2,500 Crores |
| Offer for Sale: | Approx 13,51,35,135 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
| Anchor Investors List: | Click Here |
HDB Financial Company Overview, Strengths, and Risks
HDB Financial Services Limited (HDBFS) is a prominent non-banking financial company (NBFC) in India, and a subsidiary of HDFC Bank, one of India’s largest private sector banks. Incorporated in 2007, HDBFS has grown to become a significant player in the retail finance sector, focusing on a diverse range of lending products and services. The company is classified by the RBI as an Upper Layer NBFC, indicating its systemic importance.
Company Overview:
HDBFS operates across three primary lending verticals:
- Enterprise Lending: Provides loans to micro, small, and medium enterprises (MSMEs) and salaried professionals. This segment contributes a substantial portion (around 39%) of its total loan book.
- Asset Finance: Offers secured loans for income-generating assets such as commercial vehicles, construction equipment, and tractors. This segment accounts for about 38% of its loan book.
- Consumer Finance: Provides secured and unsecured loans for personal and digital lifestyle needs, including consumer goods and personal loans. This segment makes up approximately 23% of the loan book.
Beyond lending, HDBFS also provides business process outsourcing (BPO) services, primarily to its parent, HDFC Bank, including back-office operations, collections, and sales support. They also distribute insurance products.
The company employs a “phygital” distribution model, combining a wide network of over 1,770 physical branches across more than 1,170 towns and cities (with over 80% of branches outside the top 20 largest cities) with digital channels, including a mobile application and partnerships with over 140,000 dealer touchpoints and 80+ brand tie-ups. This extensive reach allows them to tap into underserved and underbanked rural and semi-urban markets. As of March 31, 2025, HDBFS served over 17.5 million customers.
Financial Highlights (Consolidated, as of March 31, 2025):
- Total Assets: ₹1,08,663.29 crore
- Revenue from Operations: ₹16,300.28 crore
- Profit After Tax (PAT): ₹2,175.92 crore (Note: There was a marginal dip in PAT from FY24 to FY25, despite revenue growth)
- Net Worth: ₹14,936.50 crore
- Total Borrowings: ₹87,397.77 crore
- Gross Non-Performing Assets (GNPA) Ratio: 2.26% (as of March 31, 2025)
- Return on Equity (ROE): 14.72% (FY25)
- Debt/Equity Ratio: 5.85 (FY25)
- Market Capitalization (post-IPO upper price band): Approximately ₹61,253 crore
HDBFS recently launched a major IPO (June 25-27, 2025) to augment its Tier-I capital base, support future lending, and meet general corporate requirements.
Strengths of HDB Financial Services Limited:
- Strong Parentage and Brand Credibility: Being a subsidiary of HDFC Bank, HDBFS benefits significantly from the strong brand reputation, trust, and operational stability associated with its parent. This also provides access to a cost-effective and diversified borrowing base.
- Diversified and Granular Loan Book: The company offers a wide range of lending products across enterprise, asset, and consumer finance, reducing concentration risk. Its focus on small-ticket, retail loans, with no single product exceeding 25% of the loan book and top 20 customers contributing less than 0.34% of total loans, highlights strong granularity.
- Extensive “Phygital” Distribution Network: HDBFS has a pan-India presence with a large network of branches, particularly strong in semi-urban and rural areas (over 80% of branches outside top 20 cities), combined with digital platforms and extensive dealer touchpoints. This allows for broad customer reach and efficient sourcing.
- Robust Credit Underwriting and Risk Management: The company leverages technology, including digital onboarding, AI/ML-driven credit scorecards, and automated decision-making, supported by a large underwriting and collections team. This disciplined approach has helped maintain relatively healthy asset quality (GNPA of 2.26% in FY25) even across economic cycles.
- Focus on Underserved Segments: By targeting underbanked and first-time borrowers, particularly in Tier II, III, and IV cities, HDBFS is well-positioned to capitalize on the growing credit demand in these less-penetrated regions and align with financial inclusion initiatives.
- Strong Financial Performance: Despite a recent dip in PAT, the company has demonstrated consistent revenue growth, healthy AUM growth (23.7% CAGR between FY23-FY25), and a strong balance sheet with competitive ROE and healthy capital adequacy.
- Business Process Outsourcing (BPO) Services: The BPO segment, primarily serving HDFC Bank, provides an additional revenue stream and enhances the overall service offering.
Risks of HDB Financial Services Limited:
- Reliance on HDFC Bank Brand and Licensing Agreement: While a strength, the company’s brand recognition and credibility are heavily tied to the HDFC Bank name, used under a licensing agreement. Any termination or adverse change in this agreement or reputational harm to HDFC Bank could significantly impact HDBFS.
- Potential Regulatory Mandates for Promoter Stake Reduction: As an Upper Layer NBFC, HDB Financial Services may be subject to future RBI regulations that could require HDFC Bank to further reduce its ownership stake, potentially below 20% (unless specific RBI approvals are obtained for higher percentages). This could lead to shifts in control or strategy.
- Asset Quality and Credit Risk: Although asset quality has been managed well, the company has significant exposure to unsecured loans (around 27% of gross loans in FY25). These loans lack collateral, increasing default risk. Additionally, even for secured loans, the value of collateral can decrease or recovery can be delayed, exposing the company to losses. The recent increase in GNPA (from 1.90% in FY24 to 2.26% in FY25) also warrants monitoring.
- Macroeconomic Headwinds: The company’s performance is sensitive to overall economic conditions in India. A downturn, rising interest rates, or increasing unemployment could lead to higher defaults, lower demand for loans, and adversely affect its financial health.
- Intense Competition: The Indian lending services industry is highly competitive, with numerous established banks, other large NBFCs (like Bajaj Finance, Cholamandalam, Shriram Finance), fintech startups, and informal financiers. This intense competition can lead to pressure on lending rates, higher customer acquisition costs, and reduced margins.
- Asset-Liability Mismatches: NBFCs are inherently exposed to asset-liability mismatches. Future mismatches could lead to liquidity concerns and negatively impact profitability and cash flows.
- Negative Cash Flows from Operations (Historically): The company has incurred negative cash flows from operating activities in recent fiscal years as it invests in expanding its network. While common during expansion, prolonged negative operating cash flows could put a strain on liquidity.
- Interest Rate Fluctuations: As a financial services company, HDBFS is exposed to interest rate volatility. An increase in borrowing costs that cannot be fully passed on to customers could impact net interest margins and profitability.
- Regulatory Changes: Being an Upper Layer NBFC, HDBFS faces increasing regulatory scrutiny. Any further tightening of lending norms, provisioning requirements, or capital adequacy rules by the RBI could necessitate changes in business strategy and impact growth.
HDB Financial IPO Market Lot
The HDB Financial IPO minimum market lot is 20 shares, requiring an application amount of ₹14,800. Retail investors can apply for up to 13 lots, which equals 260 shares and a total investment of ₹1,92,400.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 20 | ₹14,800 |
| Retail Maximum | 13 | 260 | ₹1,92,400 |
| S-HNI Minimum | 14 | 280 | ₹2,07,200 |
| B-HNI Minimum | 68 | 1,360 | ₹10,06,400 |
HDB Financial IPO Allotment & Listing Dates
The HDB Financial IPO date is June 25, 2025, and the IPO will close on June 27, 2025. The allotment of shares will be finalized on June 30, 2025, and the IPO listing is scheduled for July 2, 2025 on the BSE and NSE.
| Type | Date |
|---|---|
| IPO Open Date: | June 25, 2025 |
| IPO Close Date: | June 27, 2025 |
| Basis of Allotment: | June 30, 2025 |
| Refunds: | July 1, 2025 |
| Credit to Demat Account: | July 1, 2025 |
| IPO Listing Date: | July 2, 2025 |
HDB Financial IPO: Promoters
The promoter of HDB Financial Services is HDFC Bank Limited, one of India’s leading private sector banks.
HDB Financial IPO Company Financial Report
The company reported a revenue of ₹16,300.28 crores in FY 2025, showing growth compared to ₹14,171.12 crores in FY 2024. However, the net profit declined, with ₹2,175.92 crores in FY 2025 as against ₹2,460.84 crores in FY 2024.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹11,306.29 | ₹9,958.73 | ₹1,011.40 | ₹62,025.94 |
| 2023 | ₹12,402.88 | ₹9,775.48 | ₹1,959.35 | ₹70,050.39 |
| 2024 | ₹14,171.12 | ₹10,866.45 | ₹2,460.84 | ₹92,556.51 |
| 2025 | ₹16,300.28 | ₹13,372.48 | ₹2,175.92 | ₹1,08,663.29 |
HDB Financial IPO Valuation – FY2025
| KPI | Values |
|---|---|
| ROE: | 14.72% |
| ROCE: | [.]% |
| EBITDA Margin: | [.]% |
| PAT Margin: | [.]% |
| Debt to equity ratio: | 5.85 |
| Earning Per Share (EPS): | ₹27.4 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 14.7% |
| Net Asset Value (NAV): | ₹198.8 |
HDB Financial Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Bajaj Finance Limited | 26.89 | 34.3 | 19.35% | 155.6 | 69,683.51Cr. |
| Sundaram Finance Limited | 170.53 | 28.1 | 15.48% | 1,187.8 | 8,485.63 Cr. |
| L&T Finance Limited | 10.61 | 17.9 | 10.79% | 102.5 | 15,924.24Cr. |
| Mahindra & Mahindra Financial Services Limited | 18.32 | 14.5 | 10.91% | 154.9 | 18,463.10Cr. |
| Cholamandalam Investment and Finance Company Limited | 50.72 | 31.4 | 19.71% | 281.5 | 25,845.98Cr. |
| Shriram Finance Limited | 50.82 | 13.0 | 18.17% | 300.3 | 41,834.42Cr. |
Objects of the Issue – HDB Financial IPO
Augment the Company’s Tier-I Capital base
Meet the Company’s future capital requirements
Support onward lending across the following business verticals:
- Enterprise Lending
- Asset Finance
- Consumer Finance
HDB Financial IPO Review
- Canara Bank
- DRChoksey FinServ
- Emkay Global
- Hem Securities
- IDBI Capital
- Marwadi Shares
- Nirmal Bang
- SBICAP Securities
- Sharekhan
- SMC Global
- Sushil Finance
- Swastika Investmart
- Ventura Securities
- Geojit
- Reliance Securities
- Capital Market
- BP Wealth
- ICICIdirect
- Choice Broking
HDB Financial IPO Registrar
MUFG Intime India Private Limited
Phone: +91 810 811 4949
E-mail: hdbfinancial.ipo@linkintime.co.in
Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
IPO Lead Managers aka Merchant Bankers
- JM Financial Limited
- BNP Paribas
- BofA Securities India Limited
- Goldman Sachs (India) Securities Private Limited
- HSBC Securities and Capital Markets (India) Private Limited
- IIFL Securities Limited
- Jefferies India Private Limited
- Morgan Stanley India Company Private Limited
- Motilal Oswal Investment Advisors Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- Nuvama Wealth Management Limited
- UBS Securities India Private Limited
HDB Financial Company Address
HDB Financial Services Limited
HDB House, Tukaram
Sandam Marg, ASubhash Road,
Vile Parle (East),
Mumbai – 400057,
Maharashtra, India
Phone: +91 22 4911 6350
E-mail: investorcommunications@hdbfs.com
Website: www.hdbfs.com
FAQs on HDB Financial IPO
The HDB Financial IPO will open on June 25, 2025, and close on June 27, 2025.
The price band is set at ₹700 to ₹740 per equity share.
The company aims to raise approximately ₹12,500 crores, including a fresh issue of ₹2,500 crores and an OFS of 13,51,35,135 shares.
The minimum market lot is 20 shares, and the minimum investment amount is ₹14,800. Retail investors can apply for up to 13 lots (₹1,92,400).
The basis of allotment will be finalized on June 30, 2025, and the IPO is scheduled to list on BSE and NSE on July 2, 2025.
The promoter is HDFC Bank Limited, one of India’s top private sector banks.
To augment the Tier-I capital base, support onward lending, and meet the company’s future capital requirements.
In FY 2025, HDB Financial reported ₹16,300.28 crores in revenue and ₹2,175.92 crores in profit, compared to ₹14,171.12 crores revenue and ₹2,460.84 crores profit in FY 2024.
The GNPA ratio is 2.26% and the debt-to-equity ratio stands at 5.85 as of March 31, 2025.
Lead managers include JM Financial, Goldman Sachs, Morgan Stanley, among others. The registrar is MUFG Intime India Pvt Ltd.
