HDB Financial Services Launches ₹12,500 Crore IPO on June 25: Key Details for Investors

HDB Financial Services, a prominent retail-focused NBFC backed by HDFC Bank, is all set to launch its highly anticipated Initial Public Offering (IPO) worth ₹12,500 crore. The issue will open for public subscription on June 25, 2025, and close on June 27, 2025. The offering includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore, with HDFC Bank acting as the promoter.

Price Band and Shareholding Structure

The price band for the HDB Financial IPO has been fixed at ₹700 to ₹740 per equity share with a face value of ₹10 each. HDFC Bank currently holds a 94.04% stake in the company, translating to over 75 crore equity shares before the IPO.

Industry Position and Peer Comparison

According to CRISIL data presented in the company’s RHP (Red Herring Prospectus), HDB Financial ranks as the seventh-largest NBFC in India based on total gross loan book, which stood at ₹90,220 crore as of March 31, 2024. It operates in a competitive market alongside peers such as Bajaj Finance, Tata Capital, Aditya Birla Finance, Cholamandalam Investment, and Mahindra Finance.

Business Model and Operations

HDB Financial has built a diversified lending portfolio structured across three primary verticals: Enterprise Lending, Asset Finance, and Consumer Finance. The company leverages an omnichannel distribution network, ensuring broad customer reach and scalability.

In its RHP, the company highlights that its consistent growth in profitability and assets reflects the strength of its operating model.

Financial Performance Overview

HDB Financial has demonstrated strong financial growth over the last three fiscal years:

• FY23: Profit after tax (PAT) – ₹1,959.35 crore; Revenue – ₹12,402.88 crore

• FY24: PAT – ₹2,460.84 crore; Revenue – ₹14,171.12 crore

• FY25: PAT – ₹2,175.92 crore; Revenue – ₹16,300.28 crore

As of FY25, total assets reached ₹1.08 lakh crore, underscoring the company’s rapid scale-up.

Asset Quality and Ratios

Among NBFC peers, HDB Financial has one of the strongest asset quality profiles, reporting:

• Gross NPA (GNPA): 2.26% (4th lowest among peers)

• Net NPA (NNPA): 0.99% (5th lowest)

• Average Cost of Borrowing: 7.90% (6th lowest)

• Return on Equity (RoE): 14.72% (5th highest)

• Leverage: 5.9 times (3rd highest)

• Provision Coverage Ratio: 55.95% (3rd highest)

These figures position HDB Financial as a well-capitalized and stable NBFC, offering attractive fundamentals for long-term investors.

The HDB Financial IPO presents a major opportunity in India’s NBFC sector. Backed by HDFC Bank and supported by strong financials, scalable operations, and competitive positioning, this offering could draw significant interest from institutional and retail investors alike.

Disclaimer: This content is for informational and educational purposes only and should not be considered financial advice. Investors are advised to perform their own due diligence or consult with a registered financial advisor before investing.