HDB Financial IPO opens for subscription: Here’s how to apply under the HDFC Bank shareholders’ quota

HDB Financial Services aims to raise ₹12,500 crore via its initial public offering. Since the company is a wholly owned subsidiary of HDFC Bank it has reserved shares worth ₹1,250 crore for HDFC Bank shareholders (10% of issue size). However, under the shareholders' quota, there will be no further discount for the IPO applicants.

The company has further clarified via E-mail to HDFC Bank shareholders that bids by eligible HDFC Bank shareholders in the HDFC Bank shareholders reservation portion as well as in the retail portion or non-institutional portion (generally referred as HNI portion) shall not be treated as multiple bids.

Let's take a look at who can bid under the shareholders’ category in the HDB Financial Services IPO subscription:

HDB Financial Services IPO: Last date for shareholder quota eligibility

Applicants who hold HDFC Bank shares on or before June 19 are eligible to apply under the shareholders’ quota for the HDB Financial Services IPO. Maximum amount to be applied in shareholder quota is ₹2,00,000. All investors who held even a single share of HDFC Bank in their demat accounts are eligible to apply under the shareholders' quota of the HDB Financial Services IPO.

The company has set aside shares worth ₹1,250 crore for existing HDFC Bank investors under the shareholders’ category. HDB Financial Services filed its RHP on June 20, 2025 with market regulator SEBI.

Additionally, eligible shareholders can also place bids for the public issues under retail or HNI category, along with shareholder category. However, the bids shall not be treated as multiple bids. Allotment in shareholder category will be on proportionate basis subject to minimum lot.

HDB Financial Services IPO details

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.

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 minimum lot size for an application is 20 shares, and the investor would have to apply for a minimum of 1 lot.

About HDB Financial Services

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 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.

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.

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.

HDB Financial Services IPO objective

The company will use IPO net proceeds to augment capital base for future capital requirements including onward lending under any of company’s business verticals i.e. enterprise lending, asset finance and consumer finance.

Financial snapshot