HDB Financial Services IPO: Check price band, issue size, reservation details , GMP & more

The initial public offering of HDB Financial Services shall open for bidding on Wednesday, June 25. The shadow lender is selling its shares in the range of Rs 700-740 apiece for which investors can apply for a minimum of 20 equity shares and its multiples thereafter. The issue shall close for bidding on Friday, June 27, 2025.

HDB Financial Services is looking to raise a total of Rs 12,500 crore via IPO, which includes a fresh share sale of Rs 2,500 crore and an offer-for-sale (OFS) of up to 13,51,35,135 equity shares worth Rs 10,000 crore by its parent HDFC Bank Ltd. Anchor book for the issue shall open on Tuesday, June 24. MUFG Intime India (Link Intime) is the registrar for the issue.

Incorporated in 2007, Ahmedabad-headquartered HDB Financial Services is a retail-focused, non-banking financial company. Its lending products are offered through the three business verticals: enterprise lending, asset finance and consumer finance. It also offers business process outsourcing (BPO) services to its parent HDFC Bank.

The net proceeds from the issue shall be utilized towards augmentation of its tier-I capital base to meet the future capital requirements including onward lending. HDB Financial Services is commanding a grey market premium of Rs 80-85 apiece, signaling a listing pop of 11-12 per cent for the investors over its upper end of the price band.

HDB Financial Services omni-channel 'phygital' distribution model combines a large branch network, in-house tele-calling teams and various external distribution networks and channel partners. It had a pan-India network of 1,772 branches in 1,162 towns across 31 states and union territories, with over 80 per cent of the branches located outside the 20 largest cities in India.

HDB Financial Services has reserved shares worth Rs 20 crore for its eligible employees, while shares worth Rs 1,250 crore shall be reserved for shareholders of HDFC Bank. Qualified Institutional Bidders (QIBs) will get 50 per cent of the net offer reserved, while non-institutional investors (NIIs) will have 15 per cent allocation. Retailers will get the remaining 35 per cent of the net offer.

For the six month ended on September 30, 2024, HDB Financial Services reported a net profit of Rs 1,172.70 crore with a revenue of Rs 7,890.63 crore. The company clocked a net profit of Rs 2,460.84 crore with a revenue of Rs 14,171.12 crore for the financial year 2023-24. The company shall command a market capitalization of Rs 61,400 crore.

JM Financial, BNP Paribas, Bofa Securities India, Goldman Sachs (India) Securities, HSBC Securities & Capital, IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, UBS Securities India are the book running lead managers of the HDB Financial IPO.