HDB Financial IPO : Price, Date & Details

HDB Financial Services IPO : HDB Financial Services Limited, a subsidiary of HDFC Bank and considered one of India’s leading NBFCs (Non-Banking Financial Company), is now bringing its long-awaited IPO. The IPO will open on June 25, 2025 and has a total size of ₹12,500 crore. Out of this, ₹2,500 crore will be a fresh issue (sale of new equity shares), while ₹10,000 crore will be offered under Offer for Sale (OFS).

The IPO will be open for investment from June 25 to June 27, 2025 and is likely to be listed on BSE and NSE on July 2, 2025.

HDB IPO Details

Key HDB IPO Dates

About HDB Financial Services Limited

HDB Financial Services Limited, founded in 2007, is a retail-focused NBFC (Non-Banking Financial Company) and a subsidiary of HDFC Bank. The company provides both secured and unsecured loans to customers across the country. It services three major business segments:

Business segment:

Enterprise Lending : A variety of loans offered to MSMEs and salaried professionals.

Asset Finance : Providing finance to customers for income-generating assets such as commercial vehicles, tractors and construction equipment.

Consumer Loans :  Loans offered for personal needs or household expenses.

In addition, the company also offers BPO services, which include back-office support, collections and sales-related services. It also distributes insurance products to its customers.

As of March 31, 2025, the company has a strong presence across India, with 1,771 branches spread across 1,170 cities and towns. Notably, 80% of these branches are located outside the top 20 cities in the country, which explains its rural and semi-urban hold.

Financial Performance

Objective of HDB Financial IPO

HDB Financial Services Limited will use the capital raised through this IPO primarily to meet the company’s future financial needs and business expansion. The fresh issue amount of ₹2,500 crore in this IPO has been deployed for specific purposes:

Strengthening Tier-1 capital base : The company will use this fresh capital to increase its Tier-1 capital base. Tier-1 capital is an indication of the fundamental financial strength of any financial institution. This capital will help the company to provide new credit facilities in the future, grow the loan portfolio and maintain financial security.

Loan distribution in various business verticals : HDB Financial has three major business areas – enterprise lending, asset finance and consumer loans. The funds will help the company to increase its onward lending capacity in all these areas, thereby providing an opportunity to reach more customers and boost credit growth across the country.

Business expansion and branch network development : HDB is already present in over 1,170 cities and towns across India, and will now use the funds raised through this IPO to further expand its branch network, invest in technology, and expand into rural and semi-urban areas.

To summarize, the company will use the funds raised through this IPO to strengthen its financial base, expand new loan schemes, and expand its reach across the country. This will further strengthen HDB Financial as a strong, resilient, and competitive NBFC.

Reservation Details

Competitive Strength

Diversified and balanced loan portfolio : The biggest plus point of HDB Financial Services is its diversified and balanced loan portfolio. The company operates in three strong segments such as enterprise loans, asset finance and consumer loans, which allows it to target different parts of the 

market. The special thing is that in these loan segments the company has shown stable growth over time, which also keeps it relatively safe from financial shocks.

Deep hold in rural and semi-urban areas : Another big strength of HDB is its branch network. 80% of the company’s branches are located outside the top 20 cities of India, which shows that HDB has understood the rural and small town market well. In these areas, the reach of banking and loans is low, which gives the company an opportunity to reach these underbanked customers.

Strong image and trust of HDFC Bank : HDB Financial is a subsidiary of HDFC Bank, and this benefits it at every level—be it brand credibility, governance or credit discipline. The association with a bank like HDFC also boosts investor confidence and gives it an edge over the competition in the market.

Technology-based “phygital” distribution model : HDB has strengthened its distribution network not only through physical branches but also through digital channels and tele-calling teams. This “phygital” model gives customers the perfect combination of on-ground service and digital convenience, which is extremely important in today’s fast-changing financial world.

Experienced management and strict underwriting : The company has experienced leadership and a strong credit rating and collection system. This ensures that risk is better managed and the probability of default is low. All these factors have made HDB a sustainable and growth-oriented NBFC.

Risk factors

Decline in PAT (Profit) in FY2025 : Although the company’s revenue has increased year-on-year, PAT (Profit After Tax) has declined by about 12% in FY2025. This decline could be a cause of concern for investors who are expecting listing gains in the short-term. This could be attributed to increased costs, fluctuations in interest rates, or challenges in debt recovery.

High Debt-to-Equity Ratio (5.85) : HDB Financial has a Debt/Equity ratio of 5.85, which is considered relatively high in the NBFC sector. This indicates that the company has borrowed more than its capital. If there is a sharp increase in interest rates or difficulties in collection in the future, it may impact the company’s profitability and liquidity.

Increasing competition : The Indian NBFC sector now has not only traditional players, but new fintech start-up’s and small finance banks are also emerging rapidly. These companies are providing more digital, faster and flexible services, increasing the pressure on old institutions like HDB to keep themselves technologically updated. Dependence on economic cycle and rural demand : HDB’s branches are mostly in small towns and rural areas. In such a situation, many external factors like the overall economic condition of the country, monsoon conditions, rural income and employment can affect the company’s loan disbursal and

GMP (Grey Market Premium) and Listing Prospects

Current GMP Update : As of today (23 June 2025), the GMP of HDB Financial Services IPO is around ₹48–₹52 per share, which represents a premium of around 6–7% over the IPO upper limit (₹740). A few days ago, it even touched ₹100–₹105, but now it has fallen to ₹48–₹52.

Final Thought 

HDB Financial IPO is coming with a strong brand, extensive branch network and reliable financial position. The listing gain potential is moderate, but for long-term investors, this can be a stable and growth-oriented opportunity. Invest wisely.