HDB Financial Services IPO: Focus Shifts to Debt-to-Equity and Capital Adequacy Ahead of ₹12,500 Cr Listing 

Mumbai, 24 June 2025: HDB Financial Services Limited, the retail-focused non-banking financial arm of HDFC Bank, is set to launch its much-anticipated ₹12,500 crore initial public offering (IPO) on Wednesday, 25 June 2025. HDB IPO will remain open for bidding until Friday, 27 June 2025, and will be listed on both BSE and NSE with a tentative listing date of Wednesday, 2 July 2025. 

Capital Adequacy and Financial Health in Focus 

As HDB Financial prepares for its listing, investor attention has turned to the company’s capital strength and leverage indicators. According to its restated consolidated financials, the company reported a debt-to-equity ratio of 5.85 as of 31 March 2025, reflecting a high reliance on borrowed capital typical of NBFC operations. 

Additionally, HDB Finance IPO aims to enhance the company’s Tier-I capital base, which plays a crucial role in maintaining regulatory capital adequacy ratios and supporting future growth across key business segments: enterprise lending, asset finance, and consumer finance. 

Backed by HDFC Bank, which currently holds a 94.32% pre-issue stake, HDB Financial’s shareholding will dilute to 74.19% post-issue. The equity dilution aligns with regulatory guidelines and long-term capital expansion plans. 

HDB Financial Sets Price Band at ₹700–₹740 Per Share 

HDB Financial Services IPO comprises a fresh issue of 3.38 crore equity shares aggregating ₹2,500 crore and an offer for sale (OFS) of 13.51 crore equity shares aggregating ₹10,000 crore. The price band has been fixed between ₹700 and ₹740 per share. The face value of each share is ₹10. 

A minimum of one lot, or 20 shares, requires a retail investment of ₹14,000, though applying at the cutoff price raises this to approximately ₹14,800. High net-worth individual (HNI) participation is divided into sNII and bNII categories, requiring minimum bids of ₹2,07,200 (14 lots) and ₹10,06,400 (68 lots), respectively. 

 IPO Allotment and Listing Timeline 

The share allotment is expected to be finalised on Monday, 30 June 2025, followed by the initiation of refunds and credit of shares to Demat accounts on Tuesday, 1 July 2025. The tentative listing on BSE and NSE is scheduled for Wednesday, 2 July 2025. 

HDB Financial: At a Glance 

Founded in 2007, HDB Financial Services operates across three key verticals — enterprise lending, asset finance, and consumer finance. Its “phygital” model combines physical presence with digital reach, supported by a nationwide network of 1,771 branches across 1,170 towns and cities. 

Over 80% of its branches are located outside India’s top 20 cities, reinforcing its strategy of catering to underbanked segments. As of March 2025, the company employed 60,432 individuals, up from 45,883 in FY2023. 

Revenue and Profit Trajectory 

The financial year ending 31 March 2025 saw a 15% increase in revenue to ₹16,300.28 crore, compared to ₹14,171.12 crore in FY2024. However, profit after tax (PAT) dropped by 12% to ₹2,175.92 crore from ₹2,460.84 crore a year earlier. 

The company’s net worth rose to ₹14,936.50 crore, while borrowings reached ₹87,397.77 crore. The price-to-book value stands at 3.72, and the return on equity (ROE) is 14.72% as of the close of FY2025. 

Share Reservation Breakdown 

Of the total 16.89 crore shares, 44.92% are reserved for qualified institutional buyers (QIBs), 13.48% for non-institutional investors (NIIs), and 31.44% for retail investors. Additional shares are reserved for employees and eligible shareholders of HDFC Bank. 

Final Words 

With its ₹12,500 crore IPO, HDB Financial Services steps into the public market spotlight amid scrutiny of its capital adequacy and leverage ratios. Backed by HDFC Bank and operating with a strong nationwide presence, the company brings a well-diversified business model to the table. The upcoming listing highlights the broader trend of non-banking financial companies managing capital levels and meeting regulatory standards in a competitive environment. 

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