HDB Financial Services IPO to Open from June 25th to 27th
HDFC Bank's subsidiary, HDB Financial Services, will launch its Initial Public Offering (IPO) from June 25th to June 27th, 2025. The ₹12,500 crore IPO has a price band of ₹700-740 per share. Listing is expected on July 2nd, 2025.
HDB Financial IPO: HDB Financial Services, a non-banking financial subsidiary of HDFC Bank, one of India's largest private banks, is launching its first Initial Public Offering (IPO). The company announced on Friday that the IPO will open on June 25th, 2025, and close on June 27th, 2025. The total size of this public issue is ₹12,500 crore, with a price band of ₹700 to ₹740 per share.
Price Band and Valuation
At the upper end of the price band, HDB Financial's valuation is approximately ₹61,400 crore. This issue will be listed on the two major stock exchanges—BSE and NSE. The expected listing date is July 2nd, 2025.
Issue Structure: Fresh Issue and OFS
This public issue comprises two parts:
Fresh Issue: This involves the issuance of new shares worth ₹2,500 crore.
Offer for Sale (OFS): Promoter HDFC Bank is selling shares worth up to ₹10,000 crore from its holdings.
The funds raised through this issue will be used to strengthen the company's Tier-I capital base and meet future capital requirements, including credit growth.
HDFC Bank's Stake
Currently, HDFC Bank holds a 94.36% stake in HDB Financial Services. Even after the IPO, HDB Financial will remain a subsidiary of HDFC Bank, compliant with regulatory norms.
Reason for Mandatory Listing
The decision to list HDB Financial Services was made following a Reserve Bank of India (RBI) directive from October 2022, mandating Upper Layer NBFCs to list on the stock exchange within three years. HDB Financial falls under this category, making listing by 2025 mandatory.
Issue Allocation Structure
According to the company's disclosure:
- 50% of the issue will be reserved for Qualified Institutional Buyers (QIBs).
- 35% will be allocated to retail investors.
- 15% will be reserved for Non-Institutional Investors (NIIs).
Investors can apply for a minimum of 20 shares and in multiples thereof.
Bidding for Anchor Investors
The bidding window for Anchor Investors will open on June 24th, 2025, for one day only. Bidding for general investors will be open from June 25th to June 27th, 2025.
IPO Management
Several prominent financial institutions are acting as Book Running Lead Managers for this public issue:
- JM Financial
- BNP Paribas
- BofA Securities India
- Goldman Sachs (India) Securities
- HSBC Securities and Capital Markets
- IIFL Securities
- Jefferies India
- Morgan Stanley India
- Motilal Oswal Investment Advisors
- Nomura Financial Advisory and Securities (India) Private Limited
- Nuvama Wealth Management
- UBS Securities India
These institutions are assisting HDB Financial in managing the IPO process.
Company Profile
HDB Financial Services is a leading NBFC unit of HDFC Bank, providing consumer loans, business loans, and asset financing services. It has a b nationwide presence and caters to the mid-income and underbanked segments.
Investor Interest
Considering the current market sentiment, there is considerable investor enthusiasm surrounding the HDB Financial Services IPO. The company's b backing, stable revenue model, and the growing demand in the consumer finance segment make it an attractive investment prospect.
