All Eyes on Allotment: What Investors Must Know About HDB Financial Services IPO Allocation Process

Mumbai, 23 June 2025: As the ₹12,500 crore HDB Financial Services IPO Limited gears up to open on 25 June, market watchers are closely tracking not just subscription numbers but the critical allotment mechanics that will decide investor participation. The IPO, one of the most anticipated issues of the year, will close on 27 June, with allotment expected to be finalised on 30 June 2025.

Here’s a detailed breakdown of how the allotment will be executed, what each investor category should expect, and why understanding this process is crucial before placing your bid.

Allotment Finalisation Set for 30 June

The basis of allotment for the HDB Financial IPO is scheduled to be finalised on Monday, 30 June 2025. Following this, refunds for unallocated shares will begin the next day on 1 July 2025, and successful applicants will see shares credited to their demat accounts the same day. The company is expected to debut on BSE and NSE on Wednesday, 2 July 2025.

Retail, HNIs, QIBs: Category-Wise Allotment Break-up

The HDB Finance IPO comprises a mix of fresh issue (₹2,500 crore) and offer-for-sale (₹10,000 crore), translating into 16,89,18,919 equity shares up for grabs. These shares will be distributed across investor segments with a structured reservation policy.

Out of the total issue:

• Qualified Institutional Buyers (QIBs) get the major share with 7,58,78,378 shares (44.92%)
• Non-Institutional Investors (NIIs) or HNIs are allocated 2,27,63,514 shares (13.48%)
• sNII (< ₹10 lakh): 75,87,838 shares
• bNII (> ₹10 lakh): 1,51,75,676 shares
• Retail Individual Investors (RIIs) have access to 5,31,14,865 shares (31.44%)
• Employees get 2,70,270 shares (0.16%)
• Eligible shareholders of HDFC Bank are allocated 1,68,91,892 shares (10%)
• Investor Eligibility and Bidding Limits Explained

Retail investors can bid for a minimum of 1 lot (20 shares), amounting to ₹14,800 (at upper band ₹740). The upper cap for retail investment stands at 13 lots (₹1,92,400).

For High Net-worth Individuals:

• sNII (Small HNI): Minimum 14 lots (280 shares), requiring ₹2,07,200
• bNII (Big HNI): Minimum 68 lots (1,360 shares), amounting to ₹10,06,400

Crucially, only retail investors and employees can apply at the cut-off price, while HNIs must quote a price within the ₹700–₹740 band.

What’s the Shareholder Quota?

Applicants holding shares in HDFC Bank Limited as of the record date are eligible to apply under the shareholder category, provided the total bid amount under this quota does not exceed ₹2 lakh.

They can also combine the shareholder quota with other categories like Retail (RII) or Non-Institutional Investor (sNII/bNII), based on their total investment. However, each category’s respective limit must be followed.

For example:

• Shareholder + RII: Total bid amount must remain within ₹2 lakh.
• Shareholder + sNII or bNII: The shareholder portion must be ≤ ₹2 lakh, and the HNI portion must follow respective sNII (₹2L–₹10L) or bNII (>₹10L) limits.
• Employee + Shareholder + RII: Bids under each category must stay within their defined caps (Employee: up to ₹5 lakh, Shareholder: up to ₹2 lakh, RII: up to ₹2 lakh).

How Allotment Will Be Finalised

Allotment will follow the proportionate method with a focus on ensuring wide participation. In case of oversubscription in the retail category, lottery-based allotment will apply. For QIB and HNI categories, allocation is based on bid strength and price.

The tentative IPO schedule is as follows:

• Bidding Window: 25–27 June 2025
• Allotment Date: 30 June 2025
• Refunds Initiated: 1 July 2025
• Demat Credit: 1 July 2025
• Listing on NSE & BSE: 2 July 2025

Note: UPI mandate confirmation deadline is 5 PM on 27 June.

How to Track Your Allotment

Investors can check their allotment status from 30 June onwards. They can check their allotment status for the HDB Financial Services Ltd IPO on the official registrar portal, managed by MUFG Intime India Pvt Ltd. The number of shares allotted can be viewed directly on the registrar’s website. Ensure your PAN number and application ID are handy for faster lookup.

What Happens After the Allotment?

Successful applicants will see the shares reflected in their demat accounts by 1 July 2025. Trading of the stock is expected to commence on 2 July 2025, offering new shareholders a chance to participate in the company’s public market journey.

Final Thoughts

With the application window approaching, knowing the allotment rules and following the correct procedures is essential. Applicants should ensure timely submissions, verify category selections, confirm UPI approvals, and review bidding amounts carefully. Understanding HDB IPO allotment structure is important for applicants to navigate the application process accurately.

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Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations