HDB Financial Services IPO: Price band set at ₹700-740 per share; check GMP, issue details, more

By Admin

20 Jun, 2025

The long-awaited initial public offering (IPO) of HDB Financial Services, a leading non-banking financial company (NBFC), is finally here. Backed by HDFC Bank, the IPO is scheduled to open for public subscription from June 25 to June 27, 2025, and investors are already buzzing with excitement due to a strong grey market premium (GMP) and robust fundamentals.

IPO Price Band and Subscription Dates

The price band for the HDB Financial Services IPO has been fixed at ₹700 to ₹740 per equity share, each with a face value of ₹10. The IPO will be open for subscription from Wednesday, June 25 and will close on Friday, June 27. Prior to the public issue, the allocation to anchor investors is scheduled for Tuesday, June 24.

The floor price and cap price of the issue are 70x and 74x the face value respectively. The lot size has been set at 20 equity shares, and bids can be placed in multiples thereof.

Issue Structure and Allocation

The IPO consists of a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by HDFC Bank, the parent company holding 94.3% stake in HDB Financial Services before the IPO.

Here's how the issue is reserved:

• Qualified Institutional Buyers (QIBs): Not more than 50%
  
  

• Non-Institutional Investors (NIIs): Not less than 15%
  
  

• Retail Investors: Not less than 35%
  
  

• Employee Reservation: Equity shares worth up to ₹200 million
  
  

• HDFC Bank Shareholder Quota: Equity shares aggregating up to ₹12,500 million
  
  

GMP and Expected Listing Price

As of today, the HDB Financial Services IPO GMP (Grey Market Premium) stands at ₹83. With the upper price band at ₹740, the expected listing price is pegged at approximately ₹823 per share, a premium of 11.22% over the issue price.

The GMP reflects strong investor sentiment and signals confidence in the company’s performance post-listing.

Tentative Allotment and Listing Dates

• Basis of Allotment Finalization: Monday, June 30
  
  

• Refunds Initiation: Tuesday, July 1
  
  

• Shares Credited to Demat Accounts: Tuesday, July 1
  
  

• Listing on BSE & NSE: Wednesday, July 2
  
  

Purpose of the Issue

The proceeds from the fresh issue will primarily be used to strengthen the Tier-I Capital of the company. This will help in meeting future capital requirements across its verticals such as Enterprise Lending, Asset Finance, and Consumer Finance, and to comply with RBI's evolving capital adequacy norms.

Company Profile

HDB Financial Services is the seventh largest diversified retail-focused NBFC in India by gross loan book, totaling ₹902.2 billion as of March 31, 2024. The company serves a wide customer base through a robust omni-channel distribution network and offers lending products tailored to various segments.

As of March 31, 2025, HDB Financial Services reported:

• Gross Loan Book: ₹1,068.8 billion
  
  

• Assets Under Management (AUM): ₹1,072.6 billion
  
  

• CAGR in Gross Loans (FY23–FY25): 23.54%
  
  

• Profit After Tax (FY25): ₹21.8 billion
  
  

The company is classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI).

Industry Competitors

HDB Financial Services competes with major NBFCs such as:

• Bajaj Finance Ltd (P/E: 34.3)
  
  

• Sundaram Finance Ltd (P/E: 28.1)
  
  

• L&T Finance Ltd (P/E: 17.9)
  
  

• Mahindra & Mahindra Financial Services Ltd (P/E: 14.5)
  
  

• Cholamandalam Investment and Finance Co. Ltd (P/E: 31.4)
  
  

• Shriram Finance Ltd (P/E: 13.0)
  
  

Book Running Lead Managers and Registrar

The IPO is managed by a consortium of reputed book-running lead managers, including:

• JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs India, HSBC Securities, IIFL Capital, Jefferies India, Morgan Stanley India, Motilal Oswal, Nomura India, Nuvama Wealth, UBS Securities
  
  

MUFG Intime India Private Limited (Link Intime) is acting as the registrar for the issue.

Conclusion

With strong fundamentals, strategic backing from HDFC Bank, impressive financial performance, and a premium in the grey market, the HDB Financial Services IPO is shaping up to be one of the most anticipated offerings of 2025. Investors looking for exposure in the NBFC space may find this IPO worth considering while keeping in mind the inherent market risks.