HDB Financial IPO: What you need to know about NBFC's dividend policy and history from RHP

HDB Financial IPO: Dividend policy

According to the red herring prospectus (RHP), if there is any declaration and payment of dividends on equity shares in the future, the recommendation will be made by the HDB Financial Services' Board to the shareholders for their approval at the Annual General Meeting (AGM).

The Board will have the absolute power to declare an interim dividend in accordance with the provisions of the Companies Act.

The company, as per the RHP, said that the declaration and payment of dividends will depend on an array of financial parameters and internal and external factors, including distribution surplus available, the firm’s liquidity position and future cash flow needs, prevailing taxation policy, the trend of dividends paid in the past years, capital expenditure requirements, loan repayment and working capital needs, among others.

"The past trend in relation to our payment of dividends is not necessarily indicative of our dividend trend or dividend policy, if any, in the future, and there is no guarantee that any dividends will be declared or paid in the future," HDB Financial said.

HDB Financial dividend history: Has the company paid dividends in recent years?

HDB Financial Services distributed dividends in the last three financial years. In the fiscal years 2023–24 (FY24) and 2024–25 (FY25), the company declared a final dividend of ₹1 and an interim dividend of ₹2, respectively. A final dividend of ₹1.10 and an interim dividend of ₹0.90 were announced in FY23.

HDB Financial equity shares are expected to list on the NSE and the BSE on July 2.