Wed Jun 25 03:30:00 UTC 2025: ## HDB Financial Services Launches Massive ₹12,500 Crore IPO

**Mumbai, June 25, 2025** – HDB Financial Services, a subsidiary of HDFC Bank, launched its much-anticipated ₹12,500 crore initial public offering (IPO) today, June 25. The IPO, one of the largest in India’s non-banking financial company (NBFC) sector, will remain open for subscription until Friday, June 27.

The IPO comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by HDFC Bank, which currently holds 94.3% stake in HDB Financial Services. The price band has been fixed between ₹700 and ₹740 per equity share.

The company aims to utilize the fresh issue proceeds to augment its Tier-I capital base, supporting lending activities and future expansion. The OFS proceeds will go to HDFC Bank.

Ahead of the public opening, HDB Financial Services raised ₹3,369 crore through its anchor book, allocating shares to 141 institutional investors, including prominent names like LIC, ICICI Prudential Mutual Fund, and SBI Mutual Fund.

Market sentiment appears positive, with the company’s shares trading at a grey market premium (GMP) of around ₹80, suggesting a potential listing price of ₹820, approximately 11% higher than the upper end of the IPO price band. However, the GMP is an unofficial indicator and actual listing performance may vary.

Analysts are generally positive on the IPO, with many issuing “SUBSCRIBE” ratings, citing the company’s strong parentage, diversified product portfolio, extensive distribution reach, and attractive valuation compared to its peers. However, potential investors should also consider risks such as the company’s licensing agreement with HDFC Bank for brand usage, asset quality concerns, and significant exposure to unsecured loans.

The share allotment for the IPO is expected to be finalized on June 30, with a tentative listing date on the BSE and NSE set for July 2. Twelve investment banks, including BNP Paribas, JM Financial, and Goldman Sachs India are managing the issue, while MUFG Intime India is the registrar.

HDB Financial Services has grown into a major player in the NBFC space, boasting a gross loan book of ₹90,220 crore as of March 31, 2024, and a widespread network of 1,772 branches across India, with a focus on smaller cities and rural areas.

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