HDB Financial Services IPO: Everything You Need to Know

HDB Financial Services Limited is set to make a significant debut on the Indian stock markets with its much-awaited Initial Public Offering (IPO). Backed by HDFC Bank, one of the country's most trusted financial institutions, HDB Financial Services IPO has already stirred anticipation among retail investors, high net-worth individuals (HNIs), and institutional buyers.

Let's explore the key highlights of the HDB IPO and discover how HDFC Sky's innovative ‘One-Click IPO' feature streamlines the entire investment process, making it faster, simpler, and hassle-free for investors.

IPO Details and Structure

HDB Financial Services joins the list of major upcoming IPO set to go live this year, signalling growing investor interest in financial service providers.

The HDB Financial IPO is a book-built issue worth ₹12,500 crore, comprising both a fresh issue and an offer for sale (OFS). The fresh issue consists of 3.38 crore equity shares aggregating up to ₹2,500 crore, while the OFS includes 13.51 crore shares amounting to ₹10,000 crore. The IPO will open for subscription on June 25, 2025, and close on June 27, 2025. Allotment is expected on June 30, and the listing is tentatively scheduled for July 2, 2025, on both BSE and NSE.

The price band for the IPO is fixed at ₹700 to ₹740 per share. Retail investors can bid for a minimum lot of 20 shares, requiring an investment of ₹14,000 to ₹14,800, depending on the bid price. For sNII investors, the minimum application is 14 lots (280 shares), and for bNII investors, it is 68 lots (1,360 shares).

To apply for the IPO and monitor your investments easily, download a reliable Demat Account App. It simplifies the process and ensures seamless application in just a few clicks.

Reservation and Allocation

HDB Financial IPO offers 16.89 crore shares to the public. Here's how the shares are allocated across investor categories:

• Qualified Institutional Buyers (QIBs): 7.59 crore shares (44.92%)
• Non-Institutional Investors (NIIs): 2.28 crore shares (13.48%)
  • bNII (above ₹10L): 1.52 crore shares (8.98%)
  • sNII (below ₹10L): 75.88 lakh shares (4.49%)
• Retail Individual Investors (RIIs): 5.31 crore shares (31.44%)
• Employees: 2.70 lakh shares (0.16%)
• Shareholders: 1.69 crore shares (10%)

This balanced allocation is expected to attract participation across all investor segments, especially retail and HDFC Bank shareholders who may seek to gain from the company's future growth.

Investors can track the subscription data, allotment status, and more in real-time through the IPO Dashboard, which offers a comprehensive view of all active and closed IPOs.

Company Overview

Founded in 2007, HDB Financial Services Limited is a leading non-banking financial company (NBFC) focused on retail lending. The company's services span across three core business verticals:

1. Enterprise Lending - Offers secured and unsecured loans to MSMEs and salaried individuals.
2. Asset Finance - Provides finance for income-generating assets like commercial vehicles and construction equipment.
3. Consumer Finance - Offers personal loans to individuals for household or personal requirements.

HDB also operates a BPO segment providing support services to its promoter, HDFC Bank, and offers insurance distribution to its loan customers. It follows a "phygital" distribution model, combining physical branches with digital outreach and tele-calling channels.

As of March 31, 2025, the company had a strong presence with 1,771 branches in 1,170 towns and cities across India. Over 80% of its branches are located outside the top 20 cities, showcasing its deep reach into semi-urban and rural India. With a workforce of over 60,000 employees, HDB Financial is strategically positioned to serve India's underbanked population.

Financial Performance

Despite challenges, HDB Financial has shown consistent financial growth. Key financials are:

• Assets: ₹1,08,663 crore (FY25)
• Revenue: ₹16,300 crore (FY25), a 15% YoY growth
• PAT: ₹2,176 crore (FY25), slightly lower than the ₹2,461 crore in FY24
• EBITDA: ₹9,512 crore (FY25)
• Net Worth: ₹14,937 crore

Although PAT declined 12% YoY in FY25, the overall balance sheet remains strong, with total borrowings of ₹87,398 crore and a healthy capital base.

Key Performance Metrics

Here are some critical ratios and valuation metrics as of March 31, 2025:

• Return on Equity (ROE): 14.72%
• Debt-to-Equity Ratio: 5.85
• Price-to-Book Value (P/BV): 3.72
• Pre-IPO EPS: ₹27.41
• Post-IPO EPS: ₹26.29
• P/E Ratio: 27x (Pre), 28.15x (Post)
• Market Cap (Post-IPO): ₹61,253 crore

These figures indicate that while the company is trading at a reasonable valuation, it is slightly on the higher side in terms of P/E ratio. However, its growth trajectory and scale justify the premium.

Objects of the Issue

The net proceeds from the fresh issue, amounting to ₹2,500 crore, will be utilised primarily for:

1. Augmenting Tier-I Capital base to support business growth.
2. Onward lending across its enterprise lending, asset finance, and consumer finance verticals.

These funds will enhance HDB's financial capacity, enabling it to expand its loan book and strengthen operations.

Promoter and Shareholding Pattern

HDFC Bank Limited is the sole promoter, holding 94.32% pre-issue, which will reduce to 74.19% post-issue. The equity dilution of 20.13% will help improve the public float and market visibility.

How to Apply for an IPO Using HDFC Sky's One-Click Feature

HDFC Sky's One-Click IPO feature streamlines the IPO application process, offering a fast and user-friendly experience. Here's how you can apply for the HDB Financials IPO using this tool:

1. Log in to HDFC Sky: Sign in to your HDFC Sky account using your login credentials.
2. Navigate to the IPO Section: Go to your profile, select "Indian Stocks," and then click on the "IPO" tab.
3. Choose the IPO: Find the HDB Financial IPO from the list and click on "Apply Now."
4. Enter Your Bid: Fill in your bid amount and customise your application as needed.
5. Make the Payment: Select UPI as your payment method and proceed.
6. Approve the Mandate: Open your UPI app and authorise the payment mandate.
7. Confirm and Submit: Finalise your application by confirming and submitting your order.

Why Use HDFC Sky's One-Click IPO Feature?

• Quick and simple: Apply for an IPO in just one click-no paperwork, fewer chances of errors.
• Real-time updates: Stay informed with instant alerts on application status, allotments, and refunds.
• Unified platform: Manage all your IPO applications from a single dashboard.
• Convenient access: Apply anytime through the HDFC Sky mobile app or web portal.

HDB Financial's IPO presents a compelling investment opportunity. With HDFC Sky's One-Click IPO feature, applying becomes faster, easier, and more efficient, empowering investors to act promptly and confidently.