HDB Financial IPO: Eight Things to Know About India’s Largest-Ever NBFC IPO
HDB Financial Services, a subsidiary of HDFC Bank, made headlines with its blockbuster IPO. As India’s largest non-banking financial company (NBFC) public issue to date, this IPO has drawn massive attention from investors and analysts alike. Here's a breakdown of the eight most important things you need to know.
1. Record-Breaking IPO Size
The IPO aims to raise ₹12,500 crore, making it the largest-ever NBFC IPO in India. The issue includes a fresh issue of ₹2,500 crore and an offer-for-sale (OFS) of ₹10,000 crore by HDFC Bank to meet regulatory norms on public shareholding.
2. IPO Dates and Price Band
The IPO was open from June 25 to June 27, 2025, with a price band of ₹700–₹740 per share. The lot size for retail investors was 20 shares per lot.
3. Strong Market Response
The IPO received an overwhelming response with an overall subscription of 17 times. Qualified Institutional Buyers (QIBs) led the charge, with that category getting subscribed more than 55 times.
4. Listing Day Performance
On July 2, 2025, HDB Financial debuted on the NSE and BSE with a 13% premium, opening at ₹835 and hitting a high of ₹850. This bullish debut reflected investor confidence in its fundamentals and growth potential.
5. Robust Financials
As of FY2025:
Assets Under Management (AUM): ₹1.08 lakh crore
Net Profit: ₹2,176 crore
Net Worth: ~₹14,900 crore
Gross NPA: 2.1–2.5%
Net NPA: ~1%
These metrics point to HDB’s strong financial health and prudent lending practices.
6. Business Model Strength
HDB Financial focuses on:
Retail loans, especially consumer durables and personal loans
Enterprise finance, including working capital for SMEs
Asset finance, including used commercial vehicles and equipment
Its pan-India presence and digital integration make it well-positioned to capture growth in underserved markets.
7. Anchor Investors and Institutional Trust
Before the IPO opened, HDB raised ₹3,369 crore from anchor investors, including global asset managers and domestic mutual funds, signaling strong institutional backing.
8. Valuation and Investor Outlook
The IPO was valued at:
Price-to-Book (P/B): ~3.5x
Price-to-Earnings (P/E): ~28x
While slightly premium, analysts believe the valuation is justified considering HDB’s profitability, parentage (HDFC Bank), and growth runway in the NBFC sector.
❓ FAQs on HDB Financial IPO
1. Why is the HDB Financial IPO significant?
Because it's the largest NBFC IPO in Indian history, showcasing the growing investor appetite for high-quality non-bank lenders.
2. What was the objective behind the IPO?
To raise fresh capital for growth and to comply with SEBI’s public shareholding norms by diluting HDFC Bank’s stake.
3. Is HDB Financial a subsidiary of HDFC Bank?
Yes, HDB Financial is a wholly owned subsidiary of HDFC Bank prior to the IPO.
4. What are the risks of investing in HDB Financial?
Risks include exposure to interest rate fluctuations, potential asset quality deterioration, and regulatory challenges in the NBFC sector.
5. Should long-term investors consider HDB Financial?
With strong fundamentals, consistent profitability, and HDFC Bank's legacy backing, HDB Financial presents a solid long-term investment opportunity for those bullish on India’s credit expansion.
Published on: July 02, 2025
Uploaded by: Pankaj
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