HDB Financial Services logo is seen in this illustration taken June 19, 2025.
Credit: Reuters Photo
Bengaluru: HDFC Bank-owned HDB Financial Services has set a price band of Rs 700- 740 for its Rs 12,500 crore bound initial public offering (IPO), the company announced in a press briefing on Friday.
The IPO includes a Rs 2,500 crore fresh capital sale and Rs 10,000 crore offer for sale (OFS) from its parent company. After this, HDFC Bank will retain 75 per cent stake in HDB Financial Services. Currently, the bank holds 94 per cent stake in the non-banking financial company (NBFC).
“We only do retail lending. We don't have any corporate assets or real estate assets or any structured assets in our balance sheet. It's a well-seasoned book that's important because that demonstrates our ability to work through cycles and deliver growth with profitability,” said Chief Executive Officer Ramesh Ganesh.
The issue will open on June 25 and close on June 27 for subscribing and will hit the bourses on July 2. The price offered to shareholders is a sharp discount as compared to the grey market price (shares were traded around Rs 1,200-1,250). “The IPO pricing is something that has been determined jointly by the entire syndicate. This is what we believe are the key strengths of this franchise and seeing how peers are trading, we want to keep it attractive to investors,” said Sonia DasGupta, head of the investment banking division at JM Financial.
The net proceeds from the IPO will be used for the company’s future capital requirements including onward lending under any of the company’s business verticals including enterprise lending, asset finance and consumer finance and to ensure compliance with regulatory requirements on capital adequacy, as per the company’s red herring prospectus (RHP).
HDB Financial, which has over Rs 1 lakh crore in assets under management as of March 2025 has to list by September 2025 due to Reserve Bank of India’s (RBI) listing mandate for larger non-banking financial institutions (NBFCs). According to the central bank’s circular, a bank has to ensure that none of its subsidiaries undertakes the same activities as it does.
The NBFC which lends across segments such as personal and business loans, operates 1,747 branches nationwide.
India’s IPO streak lost some of its steam in 2025, after a blockbuster and shiny 2024, which witnessed record listings, including Hyundai, Tata Technologies among others. In fact, HDB’s is the biggest IPO since Hyundai last year. Korean electronics firm LG, Tata Capital and other Indian startups Oyo, Lenskart and Phonepe are also lined up for listing this year.