HDB Finance IPO: A Significant Move in India’s NBFC Market

HDB Financial Services is set to open its doors to public investors for the first time. Backed by HDFC Bank and known for its strong presence in small-town India, the company has quietly built one of the country’s largest lending networks. Now, with its IPO scheduled for June 2025, it’s taking a major step forward. With HDB Finance IPO scheduled for June 2025, the public issue marks a key development in the NBFC sector, given the ₹12,500 crore offer size and HDB’s position in retail-focused lending.

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To make the application process faster and more convenient, HDFC Sky’s One-Click IPO feature allows users to apply seamlessly—without paperwork or manual entry. With real-time updates, UPI integration, and a single dashboard for managing all IPO bids, the tool simplifies participation in public issues like the HDB Finance IPO.

Overview of HDB Financial Services

HDB Financial Services operates as a diversified non-banking financial company (NBFC), offering a range of secured and unsecured loans across three verticals:

• Enterprise Lending (39.85%): Focused on micro, small, and medium enterprises (MSMEs), providing capital for business growth and operations.
• Asset Finance (37.36%): Secured financing for commercial vehicles, construction equipment, and income-generating assets.
• Consumer Finance (22.79%): Includes loans for personal needs, consumer durables, and digital products.

As of March 31, 2025, HDB operated 1,771 branches across 31 states and UTs, with 80% of its branches outside the top 20 cities, demonstrating its strong rural and semi-urban footprint. The company also leverages a phygital distribution model, integrating physical branches with digital outreach.

Key IPO Details

The HDB Finance IPO, which is part of the upcoming IPO 2025, is structured as a Book Building Issue worth ₹12,500 crore, comprising:

• Fresh Issue: ₹2,500 crore
• Offer for Sale (OFS): ₹10,000 crore
• IPO Price Band: ₹700 to ₹740 per share
• Face Value: ₹10
• Lot Size: Minimum 20 shares
• Minimum Investment: ₹14,800 for retail investors

The IPO will open on June 25, 2025, and close on June 27, 2025. Final allotment is expected by June 28, with refunds and share credits scheduled for July 1. The tentative listing date is July 2, 2025, on both BSE and NSE.

Reservation and Anchor Investor Lock-in

HDB Financial has carefully structured share allocations:

• QIBs: 44.92%
• NIIs (sNII & bNII): 13.48%
• Retail Investors: 31.44%
• Shareholders & Employees: 10.16%

For anchor investors, 50% of the allocation will be under a 30-day lock-in ending July 28, 2025, with the remainder locked until September 26, 2025.

Financial Performance and Capital Use

As of March 31, 2025, HDB Financial Services reported:

• Assets: ₹1,08,663 crore
• Revenue: ₹16,300 crore
• PAT: ₹2,176 crore
• Net Worth: ₹14,936 crore

Although PAT declined by 12% YoY, the company saw a robust 15% revenue growth. The IPO proceeds of ₹2,500 crore from the fresh issue will be used to augment Tier-I capital to support future lending across all business verticals.

Strategic Strengths

Several core factors position HDB Financial for long-term success:

1. Strong Parentage: Backed by HDFC Bank, ensuring trust and stability.
2. Wide Reach: A pan-India presence, especially in underbanked regions.
3. Robust Portfolio: Highly diversified loan products catering to varied demographics.
4. Digital Capabilities: Efficient loan origination, data-driven underwriting, and advanced collections infrastructure.

   Experienced Team: Deep financial and operational expertise in management.

The company also offers BPO services and fee-based products, including insurance distribution, enhancing its revenue streams.

Applying for the HDB Financial IPO Using HDFC Sky’s One-Click Feature

HDFC Sky offers a One-Click IPO feature that streamlines the IPO application process. It enables users to apply across various public issues with minimal steps, offering a convenient experience through both web and mobile platforms. Here's how to apply for the HDB IPO using this feature:

Step-by-Step Process:

1. Log in to HDFC Sky: Enter your credentials to access your account on the HDFC Sky platform.
2. Navigate to the IPO Section: Go to your profile, select "Indian Stocks," and click on the "IPO" tab.
3. Find the IPO: Locate the HDB Financial Services IPO in the list and click on “Apply Now.”
4. Enter Bid Details: Specify the bid amount and review your application details.
5. Select Payment Method: Choose UPI as your payment option and proceed to initiate the payment.
6. Approve UPI Mandate: Open your UPI app and approve the payment request to complete the transaction.
7. Review and Submit: Check the final application details and submit your IPO request.

Key Features of One-Click IPO on HDFC Sky:

• Simple process: Minimal steps, no paperwork required.
• Real-time alerts: Notifications on application progress, allotments, and refunds.
• Centralised tracking: Monitor multiple IPO applications from a single dashboard.
• Accessible interface: Available on both mobile and desktop platforms.

This tool is designed to offer a structured and efficient way to apply for IPOs, including the HDB Finance IPO, using an integrated and user-friendly platform.

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