Understanding the HDB Financial Services IPO: A Comprehensive Overview

The Initial Public Offering (IPO) of HDB Financial Services Ltd marks one of the most anticipated entries in India’s financial market for 2025. With its scheduled dates from 25th to 27th June 2025 and an impressive ₹12,500 crore issue size, the IPO reflects the company's ambitions to solidify its market standing further.

For those planning to explore public issues like this one, the HDFC Sky’s One-Click IPO feature makes the application process faster and hassle-free, combining speed with simplicity.

Company Overview: HDB Financial Services Ltd HDB Financial Services Ltd, promoted by HDFC Bank Limited, is a leading non-banking financial company (NBFC) in India. It is classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India. The company operates across three core verticals: Enterprise Lending, Asset Finance, and Consumer Finance. With a strong focus on retail lending, it has built a robust and diversified loan book supported by a phygital distribution model that covers the entire nation.

As of 30th September 2024, the company had served over 17.5 million customers, recording a CAGR of 28.22% from March 2022. Its services are designed to meet the needs of underbanked and growing middle-class customers, making financial services more accessible to a broader population base.

IPO Details and Structure The HDB Financial Services IPO is a 100% book-built issue comprising both a fresh issue and an offer for sale (OFS). The fresh issue component aggregates up to ₹2,500 crore, while the OFS portion totals ₹10,000 crore. The IPO is priced in the range of ₹700 to ₹740 per equity share, with a minimum lot size of 20 shares, amounting to a retail investment value of ₹14,800.

IPO Schedule: • Issue Period: 25 June – 27 June 2025 • Allotment Date: To be confirmed post closure • Listing Date: Tentatively scheduled for 2 July 2025 • Face Value: ₹10 per share • IPO Size: ₹12,500 crore • Lot Size: 20 shares HDB’s pre-issue shareholding stands at 94.32%, which is expected to reduce to 74.19% post-issue. This reflects a significant dilution intended to raise capital for further expansion.

Objectives of the IPO The primary objective behind the HDB Financial Services IPO is the augmentation of Tier-I capital. This capital will support the company’s future growth plans across its lending verticals. Additionally, it ensures a strong financial base to meet operational needs and maintain a healthy capital adequacy ratio in compliance with regulatory requirements.

Industry Outlook and Market Position The Indian NBFC sector has evolved considerably, growing from under ₹2 trillion in assets under management (AUM) to approximately ₹41 trillion by the end of FY24. According to CRISIL MI&A, NBFC credit is projected to grow by 15–17% between FY24 and FY27, largely driven by consumer lending and MSME loans.

HDB Financial Services Ltd is strategically positioned within this ecosystem. With a well-balanced product portfolio and an extensive omni-channel distribution network, it addresses both urban and semi-urban market segments. Its digital footprint complements its on-ground presence, ensuring operational efficiency and scalability.

Strengths of HDB Financial Services Ltd • Diversified Portfolio: The company offers 13 different lending products across its three business lines. With ₹986.2 billion in loans, 71.08% asset-backed, and no single product over 25% of the loan book, HDB demonstrates strong, cycle-tested growth and strategic product scalability.

• Rapidly Growing Customer Base: HDB Financial Services has built a fast-growing franchise, serving 17.5 million customers at a 28.22% CAGR. Its granular loan book focuses on underbanked, credit-thin segments, backed by strong underwriting, low concentration risk, and steady growth across diverse retail sectors.

• Pan-India Network: HDB Financial Services Limited leverages a robust phygital network—comprising 1,772 branches across 31 states, 140,000 retailer-dealer touchpoints, 80 OEM partnerships, and growing fintech alliances.

• Tech-Driven Operations: HDB Financial Services leverages advanced tech, AI, and data analytics to streamline sourcing, underwriting, and collections. Backed by AAA ratings and scalable platforms, it ensures efficiency, strong credit performance, and a seamless customer experience.

• Financial Inclusion Focus: HDB Financial Services focuses on financial inclusion by serving underbanked and underserved segments, offering customised lending solutions to expand credit access and support economic participation across traditionally excluded customer groups.

Seamless Application with HDFC Sky’s One-Click IPO Feature To get started, users need to Open Demat Account Online. Once your account is active, you can begin using HDFC Sky’s One-Click IPO feature for a hassle-free experience.

The One-Click feature enables applicants to complete the IPO process in just a few simple steps: 1. Login to your HDFC Sky account using your credentials.

2. Navigate to the IPO Section via the "Indian Stocks" tab in your profile.

3. Select the “HDB Financial Services IPO” from the list and click “Apply Now”.

4. Enter Bid Amount and adjust the details according to your preference.

5. Choose UPI as your payment method and proceed.

6. Approve UPI Mandate through your UPI app.

7. Confirm and Submit the application after reviewing the details.

Conclusion The HDB Financial Services IPO offers strong backing, a diverse loan portfolio, and a focus on underbanked segments, aiming to boost Tier-I capital and strengthen its NBFC position in India.

With the HDFC Sky One-Click IPO feature, the application process is now simplified and efficient. From accessing IPO details to submitting your bid, every step can be managed through a single investment app interface. Whether you’re just starting out or tracking multiple offerings, platforms like these help manage the IPO journey from one place, anytime, anywhere.

(Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the same.).

(The story has come from a syndicated feed and has not been edited by the Tribune Staff).