Unlocking Billions: HDB Financial’s Mega IPO Set to Redefine India’s NBFC Landscape

HDFC Bank's NBFC subsidiary, HDB Financial Services, will launch its highly anticipated ₹12,500 crore ($1.5 billion) initial public offering (IPO) for retail investors on June 25, 2025. India's largest NBFC IPO this year so far, it will be tested for investors' appetite against the backdrop of euphoric market sentiment and favorable liquidity conditions.

 

Key Highlights

IPO Structure: The IPO shall consist of a new issue of fresh shares worth ₹2,500 crore and an offer-for-sale of ₹10,000 crore by parent HDFC Bank, which owns 94% of HDB Financial at present.

 

Subscription Dates: The issue is open for subscription to anchor investors (institutional investors) on June 24 and to other investors and retail investors from June 25 to June 27.

 

Listing Mandate: The listing is in accordance with RBI's instruction to list themselves by September 2025, subsequent to HDB being categorized as an "upper-layer" NBFC.

 

Financial Performance: HDB Financial reported a net profit of ₹530 crore and revenues of ₹2,620 crore in the March 2025 quarter. Its loan book stood at ₹1.07 lakh crore with more than 18 million customers and a branch network of 1,792 in 1,168 cities and towns.

 

Use of Proceeds: The new issue proceeds will enhance HDB's Tier-I capital base, which will support future expansion and growth, especially in semi-urban and underbanked segments.

 

Market Buzz: Grey market for unlisted HDB Financial shares has witnessed a sudden surge, indicating robust demand before the IPO. Price band is likely to be announced soon.

 

Bookrunners: The issue is handled by a group of 12 leading investment banks, namely JM Financial, Goldman Sachs, Morgan Stanley, and others.

 

Listing Date: The shares are expected to be listed on NSE and BSE on or about July 2, 2025.

 

Why This IPO Matters

This blockbuster IPO will not just unlock value for HDFC Bank but also provide investors access to one of India's fastest-growing NBFCs with a diversified loan book and robust rural penetration. The issue is being watched closely as a gauge of the primary market as well as the financial services sector. 

 

Source: Reuters, Economic Times, The Hindu BusinessLine, Moneycontrol, VCCircle, Financial Express, NDTV Profit, Upstox, Groww, Zerodha.