HDB Financial IPO: HDFC Bank Unit Files RHP For Rs 12,500-Crore Offer; Price Band At Rs 700-740 Per Share
HDB Financial Services IPO will open for subscription on June 25, and close on June 27.
HDFC Bank Ltd.'s unit, HDB Financial Services, filed the red herring prospectus on Thursday for a Rs 12,500-crore initial public offering.
The IPO will open for subscription on June 25, a day after the company will raise funds through the anchor investment round. The subscription window for the issue will close on June 27.
HDB Financial plans to raise Rs 2,500 crore via a fresh issue of shares and Rs 10,000 crore through an offer for sale of shares held by HDFC Bank. The company has set a price band at Rs 700 to Rs 740 per share for the IPO.
The lead book runners for the IPO are 12 investment banks, including JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal and UBS. Cyril Amarchand Mangaldas is the company counsel and Link Intime India Pvt. will be the registrar, according to the DRHP.
The fresh issue proposed will be used for augmenting the company’s Tier-I Capital base to meet the company’s future capital requirements including onward lending for growth of business. Further, a portion of the proceeds from the fresh issue will be used towards meeting offer expenses, according to the filing.
HDB Financial Services Financials
In financial year 2025, the NBFC generated a profit after tax of Rs 2,180 crore, which shows a CAGR of 5.38% between fiscal year 2023 and 2025.
The company's income from operations stood at Rs 16,300.28 crore as of March 2025. Income from operations for the previous fiscal year stood at Rs 14,171.12 crore and at Rs 12,402.88 for the financial year 2023.
The net profit of the NBFC stood at Rs 2,175.92 crore for the year 2025 and was higher than Rs 2,460.84 crore in the previous fiscal. The company recorded a net profit of Rs 1,959.35 for the financial year 2023.
About HDB Financial Services
HDB Financial Services is one of the leading diversified retail-focused non-banking financial companies in India in terms of total gross loan book size, according to a Crisil report. The company is categorised as an upper-layer NBFC by the RBI and offers a large portfolio of lending products through a wide omni-channel distribution network.
Its lending products are offered through three business verticals — enterprise lending, asset finance and consumer finance.
HDB Financial Services' secured loans represented 73.01% of the Total Gross Loans and unsecured loans represented 26.99% of the Total Gross Loans as of March 31, 2025. The total gross loans stood at 1,068.8 billion as at March 31, 2025, reflecting a CAGR of 23.54% between March 31, 2023 to March 31, 2025. The company's assets under management stood at Rs 1 lakh crore as at March 31, 2025 reflecting a CAGR of 23.71% between Fiscal 2023 and Fiscal 2025.
The total gross loans growth, operating efficiencies and asset quality helped the company deliver Return on Assets of 2.16% and Return on Average Equity of 14.72% for FY2025, which is the fifth highest amongst NBFCs, according to the CRISIL Report.
The company's inception was in 2007 as a subsidiary of HDFC Bank, which is the largest private sector bank in India in terms of total assets as of Sept. 30, 2024.
