Retail, HNI or QIB: Who Can Apply and How in the Upcoming HDB Financial Services IPO?

Mumbai, 23 June 2025: With HDB Financial Services Limited all set to launch its ₹12,500 crore IPO on 25 June 2025, attention has now shifted to how different investor classes, Retail Individual Investors (RIIs), High Net-worth Individuals (HNIs), and Qualified Institutional Buyers (QIBs), can participate in this highly anticipated public offering.

Allocation Breakdown: What Each Investor Category Gets

The upcoming HDB Financial Services IPO, a combination of fresh issuance and an offer for sale, comprises a total of 16,89,18,919 equity shares. According to the Red Herring Prospectus, shares have been distributed as follows:

• QIBs: 7,58,78,378 shares or 44.92%
• HNIs (NIIs): 2,27,63,514 shares or 13.48%
• bNII (> ₹10L): 1,51,75,676 shares
• sNII (₹2L–₹10L): 75,87,838 shares
• Retail Investors: 5,31,14,865 shares or 31.44%
• Shareholders: 1,68,91,892 shares or 10%
• Employees: 2,70,270 shares or 0.16%

Category-Wise Investment Criteria

Each investor type has distinct eligibility rules and application limits, clearly defined in the IPO structure:

Those eligible under multiple categories, such as being both a shareholder and employee, may also apply under combined limits, provided category-specific caps are respected.

How Retail Investors Can Apply and What It Costs

Retail investors can enter HDB Finance IPO with a minimum application of 1 lot (20 shares) amounting to ₹14,000 at the lower end and around ₹14,800 at the upper price band of ₹740. The upper limit for retail bids stands at 13 lots (260 shares) or ₹1,92,400.

What HNIs Need to Know: Minimum Investment and Bidding Rules

For High Net-worth Individuals, minimum entry requirements differ:

• sNII Category: Requires a minimum bid of 14 lots (280 shares) worth ₹2,07,200.

• bNII Category: Minimum bid is 68 lots (1,360 shares), translating to ₹10,06,400.

Unlike RIIs, HNIs are not allowed to bid at the cut-off price and must quote a price within the band.

Institutional Quota: Bulk Reserved for QIBs

Qualified Institutional Buyers, including mutual funds, banks, and insurance companies, have been allotted the largest chunk, over 44.92% of the total offering. While there’s no upper limit for QIB applications, allocations in this category are finalised post-book-building and are typically based on anchor and institutional demand.

Important Dates and IPO Timeline

Investors should take note of these key dates:

• IPO Opens: Wednesday, 25 June 2025
• IPO Closes: Friday, 27 June 2025
• Allotment Finalisation: Monday, 30 June 2025
• Refunds Initiated: Tuesday, 1 July 2025
• Shares Credited to Demat: Tuesday, 1 July 2025
• Tentative Listing Date: Wednesday, 2 July 2025
• Pricing and Lot Size

The price band is set between ₹700 to ₹740 per share, and each lot consists of 20 shares. Investors must place bids in multiples of this lot size.

Shareholding Impact Post-Issue

HDFC Bank Limited, the promoter of HDB Financial Services, will see its shareholding decrease from 94.32% pre-issue to 74.19% post-issue following the IPO.

Final Word

With a broad allocation strategy across retail, HNI, and institutional investors, HDB IPO is poised to attract wide participation. Each category comes with defined rules, ensuring clarity on who can invest, how much, and under what terms. Investors planning to apply should familiarise themselves with the reservation structure and timelines to make timely and compliant applications.

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