Exploring the HDB IPO: Your Guide to a Promising Investment Opportunity

HDB Financial Services Limited, a subsidiary of HDFC Bank, is entering the public markets with one of the most anticipated IPOs of 2025. The upcoming IPO is a ₹12,500 crore book-building issue that comprises a fresh issue and an offer for sale. This offering marks a significant milestone for India's non-banking financial company (NBFC) sector.

As IPO interest grows, tools such as HDFC Sky’s One-Click IPO feature are streamlining the application process. This tool simplifies and speeds up participation in offerings like the HDB Financial IPO.

Understanding the Structure and Scale of the Issue

The HDB Finance IPO consists of a fresh issue of approximately ₹2,500 crore through 3.38 crore shares, while the offer for sale comprises around ₹10,000 crore via 13.51 crore shares. The IPO is scheduled to open for subscription from June 25 to June 27, 2025. The issue is proposed to be listed on both the BSE and NSE, with a tentative listing date of July 2, 2025.

The IPO price band is set between ₹700 to ₹740 per share, and the minimum lot size for retail investors is 20 shares, translating to an investment of ₹14,800 at the upper band. The offering has drawn attention due to its scale and the company’s established presence in India’s retail lending space.

About HDB Financial Services Limited

Established in 2007, HDB Financial Services is a prominent NBFC that operates across three key verticals—Enterprise Lending, Asset Finance, and Consumer Finance. As of March 31, 2025, the company has a wide-reaching network of 1,771 branches across 1,170 towns and cities in 31 states and union territories, with over 80% of these branches located outside India’s top 20 cities.

In addition to retail loans, HDB offers BPO services such as collections and sales support, as well as fee-based services like insurance product distribution. The company’s “phygital” model integrates physical branches with digital systems, supporting both scale and local presence.

Financials and Key Metrics

As of the fiscal year ending March 31, 2025, HDB Financial Services recorded assets of ₹1,08,663 crore, revenue of ₹16,300 crore, and a net profit of ₹2,175 crore. Though PAT decreased by 12% from FY24, the overall asset base and revenue experienced strong growth. The company maintains a Return on Equity (ROE) of 14.72% and a Debt/Equity ratio of 5.85.

The market capitalisation at IPO pricing is pegged at ₹61,253 crore. With a pre-issue EPS of ₹27.41 and post-issue EPS of ₹26.29, the estimated P/E ratio ranges between 27 and 28.15 times, based on FY25 earnings.

Distribution and Reservation

Out of the total 16.89 crore shares, approximately 44.92% is reserved for Qualified Institutional Buyers (QIBs), 13.48% for Non-Institutional Investors (NIIs), and 31.44% for Retail Individual Investors (RIIs). Employee and shareholder categories also have specific allocations. The large reservation for institutional participants indicates the scale and institutional confidence in the offering.

The minimum investment for retail investors starts at ₹14,800, while for sNII and bNII categories, the floor begins at ₹2,07,200 and ₹10,06,400, respectively. Lot size remains at 20 shares per application unit.

Objectives of the Issue

The net proceeds from the fresh issue component of the IPO are intended to bolster the company’s Tier-I capital base. This augmentation is planned to support the company's expansion plans, including funding for secured and unsecured lending under its three business verticals.

Operational Strength and Reach

HDB Financial’s loan book is granular and diversified, ensuring lower concentration risk. This diversified approach has enabled the company to grow sustainably even during market fluctuations. With over 60,000 employees and advanced internal systems for underwriting and collections, the company boasts a robust operational structure.

Its in-house tele-calling units, digital tools, and channel partner ecosystem contribute to efficient sourcing and servicing. The company’s strength lies in combining digital infrastructure with on-ground reach—an advantage in India’s rapidly evolving financial services sector.

For individuals exploring long-term wealth creation strategies post-listing, tools like a SIP Calculator can be useful in projecting returns, particularly when comparing the IPOs with other systematic investment options.

How to Apply for the HDB Financial IPO Using HDFC Sky’s One-Click Feature

Investors exploring public issues often look for quick and simplified ways to apply. HDFC Sky’s One-Click IPO feature provides a seamless digital solution that enables users to complete their IPO applications in just a few steps, without the need for manual entries or paperwork. This feature is available through both the web platform and the mobile IPO App, offering convenient access anytime, anywhere. With this unified interface, users can manage their IPO bids, track status updates, and receive alerts—all from a centralised dashboard.

Here’s how the One-Click IPO process works on HDFC Sky:

• Log In to HDFC Sky:  Access your account using your login credentials via the web platform or mobile app.
• Navigate to the IPO Section
   Go to your profile, select “Indian Stocks,” and click on the “IPO” tab to view available offerings.
• Choose the Desired IPO:  Locate the IPO you want to apply for—in this case, the HDB Financial Services IPO—and click on “Apply Now”.
• Enter Bid Details:  Input the number of lots and price as per your preference within the designated price band.
• Select UPI Payment Method: Choose UPI as your preferred payment mode to initiate the transaction.
• Approve the UPI Mandate: Open your UPI app and authorise the payment request for the selected bid.
• Confirm and Submit the Application: Review the application details, make final confirmations, and submit your bid.
  
   

This process ensures a fast, paperless experience with real-time updates on allotment status, refunds, and application progress.

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