HDB Financial Services Ltd.’s Rs 12500 crore IPO comprises of fresh issue of Rs 2,500 crore and Rs 10,000 crore through an offer for sale. The company has fixed the price band in the range of Rs 700 to Rs 740 per share.
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Geojit Report
HDB Financial Services Ltd., a subsidiary of HDFC Bank’s IPO opened today for subscription and the offer closes on June 27 . The company has fixed the price band in the range of Rs 700 to Rs 740 per share.
The Rs 12,500 crore IPO comprises of fresh issue of Rs 2,500 crore and Rs 10,000 crore through an offer for sale. Investors can place bids starting from a minimum of 20 shares and in multiples thereafter.
The shares will be listed on both the National Stock Exchange and the BSE on July 02.
Purpose of IPO
The issue is primarily a fresh issue of Rs. 2,500 crore and offer for sale of Rs 10,000 crore, totalling issue size to Rs 12,500 crore. The net proceeds from the fresh issue will be utilized to meet future capital requirements towards onward lending.
HDB Financial Services Ltd., established in 2007, is a retail-focused, upper-layer NBFC as classified by the RBI. It operates across three lending segments—enterprise (~39%), asset finance (~38%), and consumer finance (~23%)—primarily serving low- to middleincome customers with limited credit histories.
As of March 31, 2025, the average loan ticket size stood at ~Rs 1.65 lakh. HDB also provides BPO services to its promoter and distributes insurance products to their borrowers. Its extensive network includes 1,771 branches across 1,170 locations in 31 states and union territories, with over 80% in non-metro areas and more than 70% in Tier-4 and smaller towns.
Key Risks
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A further stake sale by parent HDFC Bank may create an overhang on the stock price, potentially impacting investor sentiment.
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In FY25, Gross Stage 3 Loans rose to 2.26% from 1.90% a year earlier, indicating increased credit risk.
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Adverse regulatory changes or non-compliance may impact the business.
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