HDB Financial Services IPO Price: ₹700 to ₹740 per share
IPO Dates: 25th June 2025 – 27th June 2025
Company Overview
HDB Financial Services Limited, incorporated in 2007, is a retail-focused non-banking financial company (NBFC) offering a wide range of secured and unsecured loans across India. The company also operates a business process outsourcing (BPO) segment, providing back-office support, collection, and sales services to its Promoter, alongside distributing fee-based products such as insurance—primarily to its lending customer base.
Business Model and Distribution Network
The company operates through an omni-Business Model and Distribution Networkchannel “phygital” distribution model, which integrates a nationwide branch network, in-house tele-calling teams, and a broad network of external channel partners and distributors. This hybrid approach allows HDB Financial to efficiently reach both urban and semi-urban markets.
As of March 31, 2025, the company had a pan-India presence with 1,771 branches spread across 1,170 towns and cities in 31 States and Union Territories. Notably, over 80% of these branches are located outside India’s 20 largest cities by population, reflecting the company’s focus on serving underserved and underbanked regions.
Business Verticals
HDB Financial Services operates through three main business verticals:
1. Enterprise Lending
Launched in 2008, this vertical offers a mix of secured and unsecured loans to MSME customers and select salaried individuals. The lending is largely branch-driven and supports small businesses across the country.
2. Asset Finance
This segment focuses on financing income-generating assets such as new and used commercial vehicles, construction equipment, and tractors, enabling customers to build productive capabilities.
3. Consumer Finance
Under this vertical, the company provides personal loans to individuals for fulfilling their household or lifestyle needs, thereby supporting consumer-led demand in the economy.
Technology-Driven Operations
The company has implemented a tech-enabled framework for sourcing, underwriting, collections, and customer engagement. Over 95% of customers are onboarded digitally, and 95% of collections are processed through digital and banking channels.
A hybrid credit model is employed:
- Decentralized underwriting for enterprise and asset finance loans to leverage local market knowledge.
- Centralized assessment for small-ticket, short-tenure consumer loans.
Asset Quality and Risk Management
Despite rapid expansion, HDBFS has maintained strong asset quality:
- Gross NPA at 2.26% and Net NPA at 0.99% as of March 31, 2025.
- Credit Cost Ratio at 2.14%.
- Provisioning Coverage Ratio of 55.95%, among the highest in the industry.
- Total provisioning at 3.31% of gross loans.
The company follows a conservative provisioning policy and a well-defined Asset-Liability Management (ALM) strategy to minimize liquidity and interest rate risks.
Leadership and Governance
The company benefits from the guidance of an experienced and independent Board, with 7 out of 9 directors being independent. The Key Managerial Personnel (KMP) and senior leadership team bring deep domain expertise, with most having over 11 years of tenure with HDBFS and extensive experience across financial services.
Competitive Strengths
- Strong parentage and brand affiliation with HDFC Bank.
- Highly granular and diversified loan book.
- Balanced mix of secured and unsecured lending.
- Wide geographic reach with strong rural and semi-urban focus.
- Robust digital and physical distribution infrastructure.
- Proven underwriting and risk management systems.
- Prudent financial management with low borrowing costs and high asset quality.
- Sustained customer growth and deep market penetration.
Bidding Starts In
HDB Financial Services IPO Specifics:
| IPO Date | June 25, 2025 to June 27, 2025 |
| Listing Date | Wednesday, July 2, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹700 to ₹740 per share |
| Lot Size | 20 Shares |
| Total Issue Size | 16,89,18,918 shares (aggregating up to ₹12,500.00 Cr) |
| Fresh Issue | 3,37,83,784 shares (aggregating up to ₹2,500.00 Cr) |
| Offer For Sale | 13,51,35,135 shares of ₹10 (aggregating up to ₹10,000.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 79,39,63,540 shares |
| Share Holding Post Issue | 82,77,47,324 shares |
HDB Financial Services IPO Timetable (Important Dates)
| IPO Open Date | Wednesday, June 25 2025 |
| IPO Close Date | Friday, June 27 2025 |
| Basis of Allotment | Monday, June 30 2025 |
| Initiation of Refunds | Tuesday, July 1 2025 |
| Credit of Shares to Demat | Tuesday, July 1 2025 |
| Listing Date | Wednesday, July 2 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 27, 2025 |
HDB Financial Services IPO Lot Size
Bidders have the opportunity to bid for a minimum of 20 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 20 | ₹14,800 |
| Retail (Max) | 13 | 260 | ₹1,92,400 |
| S-HNI (Min) | 14 | 280 | ₹2,07,200 |
| S-HNI (Max) | 67 | 1,340 | ₹9,91,600 |
| B-HNI (Min) | 68 | 1,360 | ₹10,06,400 |
HDB Financial Services IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
HDB Financial Services Limited IPO Financial Information
| Period Ended | 31 Mar 2023 | 31 Mar 2024 | 31 Mar 2025 |
|---|---|---|---|
| Assets | 70,050.39 | 92,556.51 | 1,08,663.29 |
| Revenue | 12,402.88 | 14,171.12 | 16,300.28 |
| Profit After Tax | 1,959.35 | 2,460.84 | 2,175.92 |
| EBITDA | 6,251.16 | 8,314.13 | 9,512.37 |
| Net Worth | 10,436.09 | 12,802.76 | 14,936.50 |
| Reserves & Surplus | 10,645.57 | 12,949.63 | 15,023.97 |
| Total Borrowing | 54,865.31 | 74,330.67 | 87,397.77 |
Key Performance Indicator – HDB Financial Services IPO
| KPI | Values |
|---|---|
| Market Cap | ₹61,253.30 Cr |
| EPS | ₹27.41 |
| P/E (x) | 27 |
| ROE | 14.72% |
| Debt/ Equity | 0.32 |
Objects of the Issue:
HDB Financial Services Limited proposes to utilise the Net Proceeds from the IPO for the following purpose:
- To augment the Company’s Tier-I capital base in order to support future capital requirements. This includes deploying funds for onward lending across the Company’s key business verticals—Enterprise Lending, Asset Finance, and Consumer Finance.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
