HDB Financial Services Debuts on Stock Exchanges After ₹12,500 Crore IPO Receives Overwhelming Response

Mumbai, 2 July 2025: HDB Financial Services Ltd (HDBFS), a subsidiary of HDFC Bank, is listing its equity shares today on the stock exchanges, following the successful completion of a ₹12,500 crore Initial Public Offering (IPO). The offering attracted robust investor interest, making it the largest IPO of the calendar year 2025 to date.

IPO Garners Investor Backing Amid Demand Across Segments

HDB Financial Services’ IPO featured a fresh issuance of equity shares worth ₹2,500 crore and an offer for sale by HDFC Bank amounting to ₹10,000 crore. The issue price was finalised at ₹740 per share, adhering to regulatory guidelines.

HDB Financial Services IPO witnessed an overall subscription of 16.69 times, with demand led primarily by institutional investors. The subscription details across investor categories are as follows:

• Qualified Institutional Buyers (QIBs): 55.47 times
• Non-Institutional Investors (NIIs): 9.99 times
• Retail Individual Investors (RIIs): 1.41 times
• Employees: 5.71 times
• HDFC Bank shareholders (reserved quota): 4.26 times

Prior to the public issue, the company successfully raised ₹3,368.99 crore from anchor investors, which included leading domestic mutual funds and global institutional investors.

Capital to Fuel Lending Operations and Future Growth Plans

As outlined in the final prospectus, the net proceeds from the fresh issue will be primarily directed towards enhancing HDB Financial Services’ Tier-I capital base. The capital infusion is intended to support the company’s expansion across various lending verticals such as Enterprise Lending, Consumer Finance, and Asset Finance.

In addition to strengthening its financial position, the funds will also cover general corporate requirements and expenses related to the public offering.

HDFC Bank’s Stake Adjusted to Meet Regulatory Norms

Following the IPO, HDFC Bank’s shareholding in HDB Financial Services will decline from 94% to 75%, aligning with SEBI’s minimum public shareholding guidelines. Despite being a wholly owned subsidiary until now, HDB Financial Services continues to operate independently and does not share operational infrastructure with HDFC Bank.

Market Debut Supported by Leading Global and Domestic Institutions

The IPO was jointly managed by a consortium of SEBI-registered Book Running Lead Managers, including JM Financial, BofA Securities India, Goldman Sachs India, Morgan Stanley India, and IIFL Capital Services, among others.

 All regulatory requirements, risk disclosures, and offer details were made available through the Red Herring Prospectus and Final Offer Document, as mandated by SEBI.

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