HDB Financial Services Limited, a prominent NBFC and a subsidiary of HDFC Bank, is launching its IPO worth ₹ 12,500 Crores. This IPO, opening from June 25 to June 27, 2025, is one of the most anticipated offerings of the year. In this detailed HDB Financial IPO Review and Analysis, let us understand the company, its strengths, issue details, financials, valuation with peers, GMP (Grey Market Premium), and whether investors should subscribe to this IPO or avoid it.
About HDB Financial Services Ltd
Incorporated in 2007, HDB Financial Services Ltd is a retail-focused NBFC offering secured and unsecured loans through its three verticals: Enterprise Lending, Asset Finance, and Consumer Loans. It also provides BPO services and insurance distribution. The company operates on a ‘phygital’ model with 1,771 branches across 1,170 towns in India, with a majority presence outside the top 20 cities.
Competitive Strengths
– Granular retail loan book focused on underbanked customer segments
– Diversified and seasoned product portfolio across three verticals
– Wide pan-India physical and digital distribution network
– Robust credit underwriting and collection systems
– Supported by strong promoter HDFC Bank with decades of trust and reputation
HDB Financial IPO Issue Details
– IPO Open Date: June 25, 2025
– IPO Close Date: June 27, 2025
– IPO Listing Date (Tentative): July 2, 2025
– IPO Price Band: ₹ 700 to ₹ 740 per share
– Face Value: ₹ 10 per share
– Lot Size: 20 shares
– Retail Min Investment: ₹ 14,800
– Total Issue Size: ₹ 12,500 Crores
– Fresh Issue: ₹ 2,500 Crores
– Offer for Sale: ₹ 10,000 Crores
– Lead Managers: JM Financial, BNP Paribas, BofA Securities, Goldman Sachs, HSBC, IIFL, Jefferies, Morgan Stanley, Motilal Oswal, Nomura, Nuvama, UBS
– Registrar: MUFG Intime (formerly Link Intime)
HDB Financial Services Financials
Amount in ₹ Crore
|
Period Ended |
31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 1,08,663.29 | 92,556.51 | 70,050.39 |
| Revenue | 16,300.28 | 14,171.12 | 12,402.88 |
| Profit After Tax | 2,175.92 | 2,460.84 | 1,959.35 |
| EBITDA | 9,512.37 | 8,314.13 | 6,251.16 |
| Net Worth | 14,936.50 | 12,802.76 | 10,436.09 |
| Reserves and Surplus | 15,023.97 | 12,949.63 | 10,645.57 |
| Total Borrowing | 87,397.77 | 74,330.67 | 54,865.31 |
Key Ratios and Metrics (FY25)
– ROE: 14.72%
– Debt to Equity: 5.85
– Price to Book Value (P/BV): 3.72
– EPS: ₹ 27.41 (Pre-IPO), ₹ 26.29 (Post-IPO)
– P/E Ratio (Post IPO at upper band): 28.15x
Valuation – Peer Comparison
Compared to its listed NBFC peers:
– Bajaj Finance: ~33x
– Cholamandalam: ~27x
– Muthoot Finance: ~13x
– Manappuram: ~9x
– HDB Financial (Post IPO): 28.15x
HDB Financial is moderately priced.
Objects of the IPO
Augment Tier-I capital base for future requirements and onward lending under enterprise, asset, and consumer finance verticals.
Grey Market Premium (GMP)
As of June 22, 2025, the GMP is around ₹ 110, indicating a possible listing price of ₹ 850, about 14-15% above the upper price band.
Reasons to Invest in HDB Financial IPO
– Strong parentage of HDFC Bank
– Consistent revenue growth over years
– Diversified lending portfolio and pan-India network
– Focus on underbanked population
– Positive GMP indicating strong investor interest
Risk Factors
– High debt-equity ratio
– Decline in PAT FY25
– Dependence on HDFC Bank
– Competition from other NBFCs and fintechs
How to Buy HDB Financial IPO?
Apply via:
– UPI-enabled apps (Zerodha, Groww, etc.)
– Net banking ASBA
– Broker platforms (Angel One, Upstox, etc.)
Conclusion – Should you invest in HDB Financial IPO or Avoid?
Strong business model with HDFC backing, steady growth, moderate valuation and positive GMP. High-risk investors may subscribe for medium to long-term.
FAQs on HDB Financial IPO
What is HDB Financial IPO Date?
The IPO opens on June 25, 2025 and closes on June 27, 2025.
What is HDB Financial IPO Price Band?
The price band is ₹ 700 to ₹ 740 per share.
What is the lot size for HDB Financial IPO?
Investors can apply in a lot size of 20 shares.
What is the GMP of HDB Financial IPO?
As of June 22, 2025, the GMP is around ₹ 110 per share.
What are the expected listing gains?
Based on GMP, expected listing gains are around 14-15%.
What is the total IPO Size of HDB Financial?
The total IPO size is ₹ 12,500 Crores.
Is HDB Financial IPO good or bad for investment?
It is a moderate-risk, medium to long-term investment backed by HDFC Bank.
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