Explained: HDB Financial Services IPO – GMP At Rs 50; Should You Subscribe? - Check Key Details

HDB Financial Services IPO: HDB Financial Services, a subsidiary of HDFC Bank, is set to launch its Rs 12,500 crore IPO from June 25 to June 27, 2025.

This will be one of the biggest public offerings in the NBFC space. The issue includes a fresh issue of Rs 2,500 crore and an offer for sale worth Rs 10,000 crore.

HDB Financial Services Price Band

The IPO is priced in the range of Rs 700 to Rs 740 per share, and the minimum investment for retail investors is Rs 14,000 for a lot of 20 shares.

HDB Financial Services: Important Dates

The company is expected to be listed on the BSE and NSE on July 2, with the allotment likely to be finalised by June 30.

HDB Financial Services: What GMP Indicates?

As of June 23, the grey market premium (GMP) stands at Rs 50, indicating a potential listing price of Rs 790 and an estimated listing gain of around 6.76 per cent.

HDB Financial Services Company Profile

HDB Financial is currently classified as an upper-layer NBFC by the RBI and is India’s fourth-largest diversified retail-focused NBFC in terms of gross loan book size. It operates independently but benefits greatly from the backing of HDFC Bank, India’s largest private bank by assets.

As of March 2025, the company’s Assets Under Management (AUM) stood at Rs 1,073 billion, with a gross loan book of Rs 1,068 billion.

Its operations are spread across 1,771 branches in 31 states and union territories, with a strong customer base of 1.9 crore. The company’s loan portfolio is well-diversified across enterprise lending, asset finance, and consumer finance. The company's internal systems and processes are robust, with an experienced in-house underwriting team of 4,500 employees and a large collection team of over 12,000.

A majority of its loans—over 73 per cent—are secured, reflecting prudent credit practices. HDB also serves low to middle-income households, often catering to borrowers with limited or no credit history.

HDB Financial Services: Should You Subscribe?

Brokerage house SBI Securities has given a clear thumbs up to the IPO, recommending investors subscribe at the cut-off price.

It highlighted the company’s solid fundamentals and favourable positioning, stating, “The company is valued at an FY25 P/B of 3.2x/3.4x at post-issue capital at the lower price band & upper price band respectively. The company is backed by strong parentage, brand, governance, risk management and a high credit rating."

"It is one of the largest NBFCs catering to the 2nd largest customer franchise. The company is well placed to register healthy growth going ahead while witnessing an improvement in the asset quality. We recommend investors SUBSCRIBE to the issue at the cut-off price," it said.

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HDB Financial Services: Financials And Business Outlook

Its gross non-performing assets (GNPA) stood at 2.3 per cent, and net NPAs at just 1 per cent, among the best asset quality figures in the NBFC sector.

The company also benefits from low borrowing costs at 7.9 per cent, supported by its AAA credit rating and diversified funding sources. Its leverage ratio remains healthy at 5.85x, and its capital adequacy ratio (CRAR) stood at a strong 19.22 per cent as of March 2025.

Backed by HDFC Bank’s brand strength and financial discipline, HDB is well-placed to continue growing its loan book while maintaining asset quality.

In terms of valuation, the IPO is priced at a post-issue price-to-book (P/B) ratio of 3.2x at the lower end and 3.4x at the upper end of the price band. This valuation is in line with industry peers and appears reasonable given HDB’s strong fundamentals, high growth potential, and parentage support.

The company is also one of the largest NBFCs in terms of customer franchise and loan book, giving it an edge in scale and reach.

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