HDB Financial Services IPO Allocates Over 5.3 Crore Shares for Retail Investors – Key Reservation Breakdown Unveiled

Mumbai, 23 June 2025: HDB Financial Services Limited, the retail-focused NBFC backed by HDFC Bank, is set to launch its ₹12,500 crore IPO on 25 June 2025. As anticipation builds, a comprehensive breakdown of the HDB Financial Services IPO reservation structure has now been made public, laying out how the total 16,89,18,919 equity shares will be distributed across investor categories.

Retail Investors Get 31.44% of Total Shares

Out of the total issue, 5,31,14,865 shares, 31.44%, have been allocated for Retail Individual Investors (RIIs). This gives over 26.55 lakh retail applicants the opportunity to participate in the public offering. Investors in this category can bid for a minimum of 20 shares (1 lot), requiring an investment of ₹14,800 at the upper price band of ₹740. The maximum investment permitted for retail applicants is up to ₹2 lakh.

Qualified Institutional Buyers (QIBs) Lead the Table

QIBs have been allocated the largest chunk, with 7,58,78,378 shares, representing 44.92% of the total issue. This category typically includes banks, mutual funds, and insurance companies. No specific cap has been disclosed for maximum allotments in this segment.

Non-Institutional Investors (NIIs) Offered 13.48%

A total of 2,27,63,514 shares, accounting for 13.48% of the issue, are reserved for High Net-Worth Individuals (HNIs) or NIIs. This category is further split:

• Big NIIs (bNII) with investment over ₹10 lakhs:
  1,51,75,676 shares (8.98%) reserved for approximately 54,198 bidders.
• Small NIIs (sNII) with investment between ₹2-10 lakhs:
  75,87,838 shares (4.49%) set aside for about 27,099 bidders.

Minimum application for sNIIs is 14 lots (280 shares worth ₹2,07,200), while for bNIIs it is 68 lots (1,360 shares worth ₹10,06,400).

Employee and Shareholder Quotas Clearly Marked

Two additional reserved categories are:

• Employee Quota: 2,70,270 shares (0.16%) are earmarked exclusively for employees. Bidding is allowed up to ₹5 lakhs, and in select cases, employees may receive discounts for bids up to ₹2 lakhs.
• Shareholder Quota: 1,68,91,892 shares (10%) are reserved for eligible shareholders of HDFC Bank Ltd as of the cut-off date. Bids under this category are allowed up to ₹2 lakhs.

Applicants eligible under multiple categories, such as employee, shareholder, and retail can bid accordingly within specified financial limits.

Category-Wise Bidding Rules and Cut-Off Allowance

HDB Finance IPO restricts or permits cut-off price bidding based on the applicant category:

Combinations of these categories (e.g., Employee + RII or Shareholder + NII) are also permitted within overall individual limits.

IPO Subscription Timeline and Listing

The IPO opens on Wednesday, 25 June 2025, and will close on Friday, 27 June 2025.

• Allotment Date: Monday, 30 June 2025
• Refunds Initiated: Tuesday, 1 July 2025
• Shares Credited to Demat: Tuesday, 1 July 2025
• Tentative Listing: Wednesday, 2 July 2025 on BSE and NSE

UPI mandate confirmations must be submitted by 5 PM on 27 June 2025.

Offer Structure and Capital Impact

The IPO consists of a fresh issue of 3.38 crore shares (worth ₹2,500 crore) and an offer for sale of 13.51 crore shares (worth ₹10,000 crore). Post-issue, the company’s shareholding will change from 94.32% to 74.19%, marking a significant equity dilution for the promoter.

IPO Pricing and Lot Details

• Price Band: ₹700 to ₹740 per share
• Face Value: ₹10 per share
• Minimum Lot Size: 20 shares
• Retail Investment Range: ₹14,800 to ₹1,92,400 (13 lots)
• S-HNI Range: ₹2,07,200 to ₹9,91,600 (14–67 lots)
• B-HNI Minimum: ₹10,06,400 (68 lots)

Background of HDB Financial Services

Founded in 2007, HDB Financial Services is a prominent NBFC with a strong focus on underbanked segments through its three key verticals: Enterprise Lending, Asset Finance, and Consumer Finance. The company operates through a phygital model, supported by a network of 1,771 branches across 31 states and union territories, with 80% located outside India’s top 20 cities.

Final Word

With its vast network, robust portfolio, and targeted segmentation of customers, HDB IPO presents a structured and category-inclusive offering. The allocation mix provides clarity and balance across institutional, high-net-worth, retail, employee, and shareholder participants. The spotlight now shifts to 25 June when subscriptions officially open.