HDB Financial Services IPO, India’s biggest NBFC IPO, is finally opening on June 25, 2025 (Wednesday), with a total issue size of ₹12,500 crores. This upper-layer NBFC is a subsidiary of India’s largest private bank, HDFC Bank.
As of March 31, 2024, HDB Financial Services Limited is the seventh-largest, well-diversified, and retail-focused NBFC in India, with a gross loan book of around ₹90,220 crores. In this blog, we’ll know the 10 key HDB Financial Services IPO details, including its IPO dates, minimum investment, financials, and risk factors.
1. HDB Financial Services IPO Date
HDB Financial Services IPO is a mainboard IPO which is going to open on June 25, 2025 and will close on June 27, 2025. The allotment date is June 30, 2025, while the listing is expected to be on July 2, 2025. As it is a mainboard IPO, it is going to list on both the NSE and BSE exchanges.
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2. HDB Financial Services IPO Issue Size
HDB Financial Services IPO valuation, as denoted by the market capitalization, stood at ₹61,253.30 crores. The lot size is 20 shares, and the price band is fixed at ₹700 to ₹740 per share.
Its issue size is ₹12,500 crores (16.89 crore shares), which includes the fresh issue of ₹2,500 crores (3.37 crore shares) and the offer-for-sale of ₹10,000 crores (13.51 crore shares).
3. HDB Financial Services IPO Proceeds Usage
HDB Financial Services IPO fresh issue proceeds will be used to increase the Tier-I capital base of the company to meet the future requirements related to the enterprise lending, consumer finance, and asset finance.
The offer for sale component will go directly to the promoter selling shareholder, which is HDFC Bank in this case.
4. HDB Financial Services IPO Reservations and Minimum Investment
HDB Financial Services IPO reservation to retail investors is 31.44% of the offer. For QIBs, it is 44.92% of the offer, and for NIIs, it is 13.48% of the offer.
There is a 10% reservation under the HDB Financial Services IPO shareholder quota. The investors who have at least one share of HDFC Bank as on July 19, 2025, are eligible to apply in this quota.
HDB Financial Services IPO lot size is 20 shares, wherein bidding can be done in multiples. The minimum amount that a retail investor has to invest (at the upper price band) is ₹14,800. For S-NII, the minimum investment amount is ₹2,07,200, while for B-NII, it is ₹10,06,400.
5. HDB Financial Services IPO GMP
HDB Financial Services IPO GMP is ₹67 as of June 23, 2025 (at 14:35). It is expected to list at a 9.05% gain at a price of ₹807. However, GMP is not a safe or assured criterion to bid for an IPO.
6. HDB Financial Services Limited: Company Overview
Established in 2007, HDB Financial Services Limited offers a wide range of lending products designed to meet the needs of a growing and diverse customer base. These products are delivered through a strong omnichannel distribution network and are organized under three main business verticals: Enterprise Lending, Asset Finance, and Consumer Finance.
Its portfolio includes loans against property, business loans, commercial vehicle loans, auto loans, and personal loans. In addition to lending, the company also provides BPO services, including sales support and back-office operations, to the promoter (HDFC Bank).
As of March 31, 2025, HDB has served 1.92 crore customers, marking an impressive compound annual growth rate (CAGR) of 25.45% since March 31, 2023. The company operates a pan-India network of 1,771 branches, covering 1,170 towns and cities across 31 states and union territories.
7. HDB Financial Services IPO: Industry Overview
Over the years, India’s NBFC industry has significantly evolved in terms of size, operations, technology, and the range of financial products and services they offer. The total Assets Under Management (AUM) have grown from under ₹2 trillion in FY20 to around ₹48 trillion in FY25. Within the finance ecosystem, NBFCs compete with banks, microfinance institutions, digital lending platforms, and even informal lenders.
Between FY19 and FY25, NBFC credit grew at an estimated CAGR of 13.2%. Looking ahead, NBFC credit is expected to grow at a 15% to 17% CAGR from FY25 to FY28, mainly driven by strong demand in the retail, MSME, and corporate lending segments.
8. HDB Financial Services IPO: Financial Performance
In FY25, HDB Financial Services Limited’s net interest income grew by 18% year-on-year, reaching ₹7,446 crores from ₹6,292 crores in FY24. However, net profit declined by 12%, falling to ₹2,176 crores in FY25 from ₹2,461 crores in FY24.
The total gross loans of the company grew by 18% YoY to ₹1,06,878 crores in the financial year 2024-25. Its Assets Under Management (AUM) stood at ₹1.07 lakh crores, growing at a CAGR of 20.41% from FY22 to FY25.
The total borrowings stood at ₹87,398 crores in FY25, a rise of 18% from the previous financial year. On the other hand, total disbursements increased by 9% YoY to ₹66,108 crores in FY25.
9. HDB Financial Services IPO: Peer Analysis
HDB Financial Services Limited’s Price-to-Book (P/B) ratio stands at 3.72, which is lower than that of peers like Bajaj Finance, Sundaram Finance, and Cholamandalam Investment and Finance, indicating a potentially attractive investment opportunity.
As of March 31, 2025, HDB Financial also demonstrated strong asset quality, with the fourth-lowest Gross NPA ratio (2.26%) and the fifth-lowest Net NPA ratio (0.99%) among NBFCs.
The solid loan growth, operational efficiency, and healthy asset quality of HDB Financial Services helped in generating Return on Assets (RoA) of 2.16% and Return on Average Equity (RoAE) of 14.72% for FY25, ranking seventh and fifth highest, respectively.
10. HDB Financial Services IPO Risk Factors
HDFC Bank has a 94.09% stake in this company, and the RBI has proposed guidelines to reduce promoter shareholding below 20% due to overlapping of business. This can have a direct impact on HDB Financial Services Limited’s business operations and share price as well.
As of March 31, 2025, the company’s Gross Stage 3 Loans stood at 2.26% of total loans, up from 1.90% as of March 31, 2024. The non-payment or defaults by customers may adversely affect the company’s financial condition and operating results.
The company may be affected by interest rate scenarios, which could lead to a decline in net interest income and net interest margins, adversely impacting its business and overall financial condition.
For all the insights on HDB Financial Services IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for HDB Financial Services IPO easily on the SMC ACE App by opening free demat account now.
References:
https://www.sebi.gov.in/filings/public-issues/jun-2025/hdb-financial-services-limited-rhp_94689.html
https://www.investorgain.com/gmp/hdb-financial-gmp/1276/
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