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HDB Financial Services IPO
18.66xsubscribed

HDB Financial Services IPO

Finance - NBFC
listed
₹14,000Min. investment

HDB Financial Services Limited IPO Details

SectorFinance - NBFC
Price range₹700 – ₹740
IPO type
Regular
Lot size20 shares
Issue size₹12,500Cr
Red Herring Prospectus
Read
Market cap
₹61,253CrHigher than sector avg
RevenueApr 2024 - Mar 2025
₹16,300CrHigher than sector avg
Growth rate3Y CAGR
14.64%Higher than sector avg

HDB Financial Services IPO Subscription Status

Date
QIB
NII
Retail
Total
25-Jun-25
0.01 times (X)
0.76 times (X)
0.31 times (X)
0.32 times (X)
26-Jun-25
0.9X
2.26X
0.66X
1.07X
27-Jun-25
55.47X
9.82X
1.41X
18.66X

As on 25-Jun-25, 6:08 PM

HDB Financial Services IPO Timeline

  1. Pre-apply
    22 Jun 2025
  2. Bid start
    25 Jun 2025
  3. Bid end
    27 Jun 2025
  4. Allotment
    30 Jun 2025
  5. Release of funds
    1 Jul 2025
  6. Demat transfer
    1 Jul 2025
  7. Listing
    2 Jul 2025

About HDB Financial Services Limited

Incorporated in 2007 as a subsidiary of HDFC Bank Limited, HDB Financial Services is the 7th largest, diversified, retail-focused non-banking financial company (NBFC) in India with a total gross loan book of ₹90,220 crore as of March 31, 2024, among its peers. The company is categorised as an upper-layer NBFC (NBFC-UL) by the RBI.
The company primarily caters to underserved and underbanked customers in low to middle-income households with minimal or no credit history. More than 80% of HDB Financial Services branches are located outside India's 20 largest cities, and over 70% in tier 4+ towns. It operates through an omnichannel "phygital" distribution model with a pan-India network of 1,771 branches across 1,170 towns and cities in 31 states and UTs as of March 31, 2025.
The company operates through three diversified business verticals: Enterprise lending, representing 39.30% of total gross loans, providing secured and unsecured loans to MSMEs. Asset finance accounts for 38.03% of total gross loans, offering secured loans for the purchase of commercial vehicles, construction equipment, and tractors. Consumer finance accounts for 22.66%, offering loans for consumer durables, two-wheelers, automobiles, and personal loans.
Secured loans represent 73.01%, while unsecured loans account for 26.99% of total gross loans as of March 31, 2025. As of March 31, 2025, its total gross loan portfolio stood at ₹1.06 lakh crore, a rise of 18.8% YoY.
Its customers mainly comprise salaried and self-employed individuals, as well as business owners and entrepreneurs. The company served 1.92 crore customers as of March 31, 2025, growing at a CAGR of 25.45% in the last two fiscal years, while the average ticket size of loans stood at approximately ₹165,000 as of March 31, 2025.
The company maintains strong asset quality with GNPA and NNPA ratios of 2.26% and 0.99%, respectively, as of March 31, 2025, and a credit cost ratio of 2.14% for FY25. The company has highly conservative policies for provisioning, with a provisioning coverage ratio (PCR) at 55.95% and 3.31% provisioning of total gross loans as of March 31, 2025.
India has low credit penetration compared to other developing countries, with retail credit hovering around 25% of GDP as of FY25. Systemic credit is projected to grow at a robust CAGR of 13–15% between FY25–FY28, reaching ₹297 trillion. Within this, NBFC credit is expected to expand at 15–17% CAGR, gaining share from 21% in FY25 to 22% by FY28, supported by rising retail demand. The retail segment alone is projected to grow at a 14–16% CAGR, driven by small-ticket loans across housing, vehicles, personal finance, and MSMEs.
HDB Financial Services digital-first strategy with 95% digital customer onboarding and collections aligns seamlessly with India's digital revolution, where digital payment transactions grew at 50% CAGR to reach 22,200 crore in FY25, while its proven ability to navigate multiple credit cycles positions it ideally to capture the expanding Middle India segment (projected to grow from 10.3 crore to 18.1 crore households by FY30) and the massive under-penetrated rural credit market, where only 9% of banking credit reaches despite contributing 47% to GDP.
Government initiatives like PMJDY have resulted in 54.12 crore accounts being opened as of December 2024, with 67% in rural and semi-urban areas. However, only 27% of the Indian population is financially literate, and only 12% borrowed money from formal sources, indicating significant growth potential.
Now, HDB Financial Services Limited is launching its initial public offering (IPO), which consists of a fresh issue of equity shares worth up to ₹2,500 crore and an offer for sale worth up to ₹10,000 crore. The total issue size of the IPO is ₹12,500 crore. Its shares will be listed on the NSE and BSE.

Hdb Financial Services Limited IPO Analysis

IPO REVIEW

HDB Financial Services IPO | Analysis Video

Should you apply?

Watch our analysts break down the Hdb Financial Services Limited IPO — business model, financials, valuation and key risks — to help you decide whether to apply. The video covers the IPO price band, important dates, and what the subscription numbers mean for retail investors.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
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Strength and Weakness

Granular lending model with expanding customer base

The company’s customer base grew 1.6x from 1.22 crore in FY23 to 1.92 crore in FY25 with a CAGR of 25.45%. Its granular loan book is diversified across retail segments, with the top 20 customers contributing less than 0.34% of the total loan book, indicating low concentration risk.

Strong underwriting and collections backbone

With 4,500+ underwriters and 12,500+ collections staff, the company underwrote 95% of loans digitally and collected 95% via digital/banking channels in FY25. Total collections rose to ₹60,191.96 crore in FY25 from ₹49,144.75 crore in FY24, while GNPA stood at 2.26%, NNPA at 0.99%, and the credit cost ratio at 2.14%, among the fourth and fifth lowest in the NBFC peer set.

Diversified and cost-effective borrowing profile

As of March 31, 2025, the company maintained borrowings of ₹87,400 crore from 20+ banks and institutions. Backed by AAA ratings from CRISIL and CARE, it secured funding at an average borrowing cost of 7.90%, the sixth lowest among NBFC peers. NCDs (41.3%) and term loans (37.7%) formed the largest portions of borrowings, with 46% of maturities due in 1–3 years.

Diversified product portfolio

As of March 31, 2025, the company offered 13 lending products across enterprise lending, asset finance, and consumer finance. Over two years, the loan book grew at a CAGR of 23.54% to ₹1,06,880 crore, with 73.01% of our total gross loan book secured by asset-backed collateral as of March 31, 2025. No single product accounted for over 25% of the total gross loan book, underscoring portfolio granularity and risk diversification.

Wide and deep distribution network

As of March 31, 2025, the company had 1,771 physical branches across 31 states. Over 80% of the branches are located outside India’s 20 largest cities by population, and over 70% are located in Tier 4+ towns. It also leveraged 140,000+ external dealer points and 9.2M app downloads, 3,700+ tele-callers and 8,800+ digitally assisted on-field agents.

Objectives of Hdb Financial Services Limited IPO

Augment the Tier-I capital base
The company will use IPO net proceeds to augment capital to meet future capital requirements.

Compare

CompanyRevenue*3Y growthPATMarket capP/E ratioD/E ratio
This IPO₹16,300Cr14.64%₹2,175Cr₹61,253Cr27.015.85
This sector (avg.)₹789.63Cr0.02%₹117.25Cr₹6,213.48Cr52.320.85
₹41,701.78Cr---₹9,423.31Cr₹1,91,911.8Cr21.004.16
₹2,042.91Cr---₹1,612.59Cr₹1,61,687.5Cr100.630.03
₹20,214.17Cr---₹5,352.36Cr₹1,53,746.4Cr20.963.36

*Revenue for financial year 2024-25. Lower P/E and D/E ratios are generally preferred.

HDB Financial Services IPO Contact Details

Company NameHDB Financial Services Limited

How to apply for HDB Financial Services IPO?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

Hdb Financial Services Limited IPO FAQs