Top Reasons Why the Upcoming HDB Financial Services IPO Is Making Headlines: Strong Growth, Retail Focus, and HDFC Backing in the Spotlight

Mumbai, 22 June 2025: The upcoming ₹12,500 crore HDB Financial Services IPO is drawing widespread attention from investors ahead of its opening on 25 June 2025. Backed by HDFC Bank, this retail-centric non-banking financial company (NBFC) is set to list on both BSE and NSE, with the price band fixed at ₹700 to ₹740 per share and a minimum investment requirement of ₹14,800 per lot (20 shares).

IPO Timeline and Key Offer Details

The IPO, structured as a book-built issue, comprises a fresh issue of ₹2,500 crore and an Offer for Sale (OFS) worth ₹10,000 crore. The bidding window will remain open from 25 June to 27 June 2025, with allotment finalisation expected on 30 June. Shares will be credited to demat accounts and refunds initiated on 1 July, ahead of the anticipated listing on 2 July 2025.

What’s Driving the Buzz Around This IPO?

Several factors are contributing to the buzz around HDB Finance IPO:

• Proven Financial Track Record

For the year ending 31 March 2025, HDB posted revenue of ₹16,300.28 crore, marking a 15% increase from the previous fiscal. Despite a 12% dip in profit after tax (PAT) to ₹2,175.92 crore, the company remains profitable with a healthy EBITDA of ₹9,512.37 crore and a net worth of ₹14,936.50 crore.

• Diversified Lending Model

Operating across Enterprise Lending (39.85%), Asset Finance (37.36%), and Consumer Finance (22.79%), the company offers 13 different lending products. As of 30 September 2024, the total gross loan book stood at ₹986.2 billion, with 71.08% asset-backed exposure and no single product dominating the portfolio.

• Strong Parentage and Brand Trust

With HDFC Bank holding a 94.36% pre-issue stake, HDB Financial benefits from its parent’s brand strength, trust, and strategic support, giving it a clear competitive advantage in an increasingly crowded NBFC space.

• Phygital Distribution Powering Pan-India Reach

The company’s expansive physical and digital infrastructure includes 1,772 branches across 31 states and union territories, over 140,000 dealer touchpoints, and more than 80 OEM partnerships. With nearly 7 million app downloads and growing Tier 4+ town penetration, HDB’s omnichannel strategy ensures deep customer connectivity.

• Impressive Customer Base and Underwriting Strength

Serving 17.5 million customers—primarily first-time borrowers from underbanked communities—HDB Financial Services has a 28.22% CAGR in customer base growth. A 4,500-strong underwriting team and 12,000+ collections staff help maintain tight credit discipline, supporting a low Gross NPA ratio of 1.90%.

Key Financial Metrics (Restated Consolidated)
 (All figures in ₹ crore)

IPO Structure and Reservations

Retail investors have been allotted 31.44% of the issue, with up to 13 lots (260 shares) allowed for subscription. QIBs will receive 44.92%, while NIIs and shareholders get 13.48% and 10% respectively.

Digital and Technological Edge Set to Drive Future Growth

HDB Financial Services continues to invest in technology-driven transformation, leveraging AI, data analytics, automation, and scalable platforms across the customer lifecycle. This digital-first strategy enhances sourcing, onboarding, underwriting, and collections, positioning the company for operational efficiency and sustainable profitability. Over 95% of its customer onboarding is now digital, further supporting seamless expansion into rural and semi-urban markets.

Industry Tailwinds Enhance IPO Appeal

The NBFC industry is undergoing rapid expansion, with credit growth expected to clock a 15–17% CAGR between FY24 and FY27. As retail credit surges—especially in housing, auto, and personal loans—HDB stands to benefit due to its diversified offerings and focus on first-time borrowers. Its alignment with government initiatives such as PMAY and CLSS further strengthens its market position.

What Lies Ahead for HDB Financial Services?

With a sharp focus on digital transformation, expanded retail penetration, and enhanced risk management, HDB Financial Services appears well-positioned for its next phase of growth. The proceeds from the HDB IPO will be used to bolster Tier-I capital, support onward lending, and fund future expansion initiatives.

As market anticipation builds, all eyes are now on the subscription numbers from 25 June onwards. Investors—especially retail participants—will be watching closely to see if this much-awaited IPO lives up to expectations on listing day.

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