HDB Financial IPO: NBFC Promises Steady Dividends Amid Listing Buzz; Here's What the RHP Reveals

Mumbai, June 23, 2025 — HDB Financial Services Ltd, the non-banking financial arm of HDFC Bank, is getting ready for its much-anticipated IPO, aiming to raise ₹12,500 crore. With the IPO opening for subscriptions on June 25, the company’s Red Herring Prospectus (RHP) offers some interesting insights into its dividend plans, which is a key point for long-term investors considering NBFCs.

The price band for the IPO has been set between ₹700 to ₹740 per equity share of face value ₹10. The shares are expected to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on July 2, 2025.

The HDB Financial Services IPO will open for public subscription on Wednesday, June 25, 2025, and close on Friday, June 27, 2025. Anchor investors will have their bids on June 24, 2025.

Dividend Policy: A Clear and Consistent Approach

The RHP suggests that HDB Financial plans to maintain a “stable dividend” approach. This will depend on its financial performance, how much capital it needs for future growth, and existing regulatory rules. While there isn’t a specific payout ratio mentioned, the company has a history of paying dividends, including a payout of ₹2,251.8 million to HDFC Bank in FY25.

The RHP also explains that any future dividend recommendations will come from the Board of Directors, who will consider things like:

• The company’s profitability and how much earnings it retains.
• Its cash flow and ability to meet capital requirements.
• Any rules or tax limitations.
• Plans for expansion and new investments.

HDB Financial also confirms that any dividends will be declared in line with the Companies Act, 2013, and the Reserve Bank of India’s (RBI) guidelines for NBFCs in the Upper Layer (NBFC-UL).

A Look At HDB’s Past Payouts

Financials Supporting Future Dividends

As of March 31, 2025, HDB Financial reported a net worth of ₹1,49,365 million and a healthy Capital Adequacy Ratio. The IPO aims to raise ₹2,500 crore through a fresh issue of shares, with a primary goal of strengthening its Tier I capital. This robust capital base suggests the company is well-positioned to continue consistent dividend payouts after it lists.

In FY25, HDB Financial reported a total income of ₹16,300.28 crore and a profit after tax (PAT) of ₹2,175.92 crore. Its Gross Non-Performing Asset (GNPA) ratio stood at 2.26% and Net Non-Performing Asset (NNPA) ratio at 0.99% as of March 31, 2025, which are favourable compared to many peers.

HDB Financial Services IPO Details at a Glance

The ₹12,500 crore IPO consists of:

The shares are proposed to be listed on both NSE and BSE.

About the Company

HDB Financial Services Ltd is a diversified NBFC offering retail loans across enterprise, consumer finance, and asset finance verticals. It is regulated as an NBFC-UL by the RBI and is a wholly owned subsidiary of HDFC Bank. The IPO marks its first listing on public exchanges and aims to bolster its Tier I capital and brand equity.

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