HDB Financial Services IPO

18.66x

subscribed

HDB Financial Services IPO

Finance - NBFC
listed
₹14,000Min. investment
  1. Pre-apply
    22 Jun
  2. Bid start
    25 Jun
  3. Bid end
    27 Jun
  4. Allotment
    30 Jun
  5. Release of funds
    1 Jul
  6. Demat transfer
    1 Jul
  7. Listing
    2 Jul

About HDB Financial Services Limited

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 Limited IPO Overview

HDB Financial Services Limited IPO Date

HDB Financial Services IPO will open for subscription on June 25, 2025, and the closing date for the IPO is June 27, 2025. After this, investors are expected to be updated about the allotment status on Monday, June 30, 2025. Investors who have been allotted shares can expect them to be credited to their demat account on July 1, 2025. The shares will be listed on the NSE and the BSE on Wednesday, July 2, 2025.

HDB Financial Services Limited IPO Price Band

The IPO includes both a fresh issue of shares and an offer for sale. The IPO price band has been set between ₹700 to ₹740 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue, comprising a fresh issue of ₹2,500 crore and an offer for sale of ₹ 10,000 crore.

The HDB Financial Services IPO listing price will be determined on July 2, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

HDB Financial Services Limited IPO Lot Size

The HDB Financial Services IPO details have been declared. The minimum lot size for an application is 20 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹12,500 crore.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
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Revenue
Higher revenue means strong sales and good market demand
This IPO
₹16,300Cr
This sector
₹786.61Cr
Compare with companies
3Y growth
Strong 3-year growth shows consistent progress and potential
This IPO
14.64%
This sector
0.02%
Compare with companies
PAT
Higher PAT means strong profitability and efficient cost management
This IPO
₹2,175Cr
This sector
₹117.26Cr
Compare with companies
Market cap
Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹61,253Cr
This sector
₹6,592.78Cr
Compare with companies
P/E ratio
Lower ratio usually means stock is undervalued
This IPO
27.01
This sector
54.98
Compare with companies
D/E ratio
Lower ratio usually means fewer liabilities
This IPO
5.85
This sector
0.84
Compare with companies

Objectives

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

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.

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.

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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

Latest News on IPO

news logo
India's largest private lender HDFC Bank has initiated plans for the highly awaited initial public offering (IPO) of its subsidiary HDB Financial Services, as per an Economic Times report citing sources. A non-deposit-taking lender, HDB Financial could fetch a valuation in the range of $9 billion to $12 billion ( ₹75,000 crore to ₹1 lakh crore) during the IPO.
news logo
HDB Financial, HDFC Bank's subsidiary, is launching an IPO to raise Rs 12,500 crore, the largest NBFC IPO, from June 25-27. The issue includes a Rs 2,500 crore fresh issue and Rs 10,000 crore OFS by HDFC Bank, which holds 94.3% stake. Proceeds will strengthen capital for lending. Q3 FY25 saw a 26% profit drop due to higher provisions, with a loan portfolio growing to Rs 1.02 lakh crore.
news logo
The ₹12,500 crore initial public offering of HDB Financial Services, a subsidiary of HDFC Bank, is a mix of a fresh capital raise of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore.

3 min read

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HDB Financial Services proposes to utilise proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth.

2 min read

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HDB Financial Services reported an 11.57% decline in its profit after tax to ₹2,175.92 crore in the financial year 2024-25, according to the red herring prospectus (RHP). The net profit stood at ₹2,460.84 crore in the year-ago period.

3 min read

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HDB Financial IPO seeks to raise ₹12,500 crore, which includes a fresh issuance of shares valued at ₹2,500 crore and an offer for sale of ₹10,000 crore by promoter HDFC Bank.

3 min read

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HDB Financial IPO allotment finalised: The initial share sale consisted of a fresh issuance of ₹2,500 crore and an offer for sale, or OFS, of ₹10,000 crore by HDFC Bank. The total IPO size was ₹12,500 crore.

3 min read

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of HDB Financial Services IPO ?

The issue size of the HDB Financial Services IPO is 12500 Cr.

What is 'pre-apply' for HDB Financial Services IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will HDB Financial Services IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.