The initial public offer of HDB Financial Services received bids for 15,11,23,780 shares as against 13,04,42,855 shares on offer, according to stock exchange data at 17:00 IST on Thursday (26 June 2025). The issue was subscribed 1.16 times.
The issue opened for bidding on 25 June 2025 and it will close on 27 June 2025. The price band of the IPO is fixed between Rs 700 and 740 per share. An investor can bid for a minimum of 20 equity shares and in multiples thereof.
The initial public offer (IPO) consists of fresh issue to raise Rs 2,500 crore through issuance of 3.57 crore equity shares. The issue also consists of Offer for Sale (OFS) of Rs 10,000 crore through issuance of 13.51-14.29 crore equity shares from the promoter – HDFC Bank. The promoter shareholding in the company would decline to 74.2% post- IPO from 94.04% pre-IPO.
The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements.
HDB Financial Services incorporated in 2007 is the seventh largest leading, diversified retail-focused non-banking financial company (NBFC) in India in terms of the size of gross loan book at Rs 90,220 crore at end March 2024. It is categorized as an Upper Layer NBFC (NBFC-UL) by the RBI. HDFC Bank held a 94.04% stake in the company. The company is a subsidiary of HDFC Bank, which is the largest private sector bank in India with businesses (including those of its subsidiaries) spanning across retail and commercial banking, asset management, life insurance, general insurance and broking. The omni-channel “phygital” distribution model combines a large branch network, in-house tele-calling teams and various external distribution networks and channel partners.
The loan book is well seasoned as it has weathered multiple credit cycles in India since inception. GNPA ratio was healthy at 2.26% and NNPA at 0.99% at end March 2025. The company is focused on highly conservative policies for provisioning, with 55.95% of Provisioning Coverage Ratio at end March 2025, the third highest amongst the peers and a 3.31% provisioning on loan book at end March 2025.
It has a pan-India network of 1,771 branches in 1,170 towns and cities across 31 States and Union Territories. The distribution network is complemented by external distribution channel partnerships with over 80 brands and original equipment manufacturers (OEMs) and external distribution networks with over 140,000 retailers and dealer touchpoints at end March 2025.
Ahead of the IPO, HDB Financial Services on Tuesday, 24 June 2025, raised Rs 3,369 crore by issuing 4.55 crore equity shares to anchor investors at Rs 740 each.
The firm reported a standalone net profit of Rs 2,115.81 crore and total income of Rs 13,835.79 crore for the nine months ended on 31 December 2024.