India’s IPO market remains vibrant through June 2025, following a ₹6,700 crore fundraise in May. This momentum has kept investor interest alive across diverse sectors, including financial services. Now, attention turns to HDB Financial Services Limited, a significant player in the non-banking financial company (NBFC) space, as it gears up for its IPO.
Let’s explore HDB Financial Services Ltd., its upcoming IPO, financials, and the industry outlook.
About HDB Financial Services Limited
Incorporated in 2007, HDB Financial Services Ltd. is a retail-focused NBFC offering a diversified product suite. The company provides:
- Enterprise Lending: Secured and unsecured loans to MSMEs and salaried customers.
- Asset Finance: Financing for new and used commercial vehicles, equipment, and tractors.
- Consumer Finance: Loans for personal and household needs.
Additionally, the company provides BPO services (back-office, collections, sales support) and distributes insurance products, mainly to its lending customers.
HDB operates through a robust “phygital” distribution model, blending branch network strength with tele-calling teams and digital platforms. As of March 31, 2025, it had:
- 1,771 branches across 1,170 towns and cities in 31 States and Union Territories.
- Over 80% of branches outside India’s 20 largest cities, focusing on underbanked segments.
HDB Financial Services Ltd. IPO Details
The HDB Financial IPO aims to raise ₹12,500 crore, comprising:
- A fresh issue of 3.38 crore shares worth ₹2,500 crore.
- An offer for sale (OFS) of 13.51 crore shares worth ₹10,000 crore.
Proceeds will primarily augment Tier-I capital for future lending and growth.
Important IPO Timeline
| Event | Date |
| IPO Open Date | June 25, 2025 |
| IPO Close Date | June 27, 2025 |
| Allotment Date (Tentative) | June 30, 2025 |
| Initiation of Refunds | July 1, 2025 |
| Credit of Shares to Demat | July 1, 2025 |
| Listing Date (Tentative) | July 2, 2025 |
| UPI Mandate Cut-off | 5 PM on June 27, 2025 |
Key IPO Details
| Particulars | Details |
| Face Value | ₹10 per share |
| Price Band | ₹700 to ₹740 per share |
| Lot Size | 20 Shares |
| Total Issue Size | 16,89,18,919 shares (aggregating up to ₹12,500 Cr) |
| Fresh Issue | 3,37,83,784 shares (aggregating up to ₹2,500 Cr) |
| Offer for Sale | 13,51,35,135 shares (aggregating up to ₹10,000 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing at | BSE, NSE |
| Shareholding (Pre-Issue) | 79,39,63,540 shares |
| Shareholding (Post-Issue) | 82,77,47,324 shares |
Lot Size of HDB Financial Services Ltd. IPO
| Application Type | Lots | Shares | Amount |
| Retail (Min) | 1 | 20 | ₹14,800 |
| Retail (Max) | 13 | 260 | ₹1,92,400 |
| S-HNI (Min) | 14 | 280 | ₹2,07,200 |
| S-HNI (Max) | 67 | 1,340 | ₹9,91,600 |
| B-HNI (Min) | 68 | 1,360 | ₹10,06,400 |
HDB Financial Ltd. Financials
The IPO values HDB Financial Services at a market capitalisation of ₹61,253.30 crore. The company has grown steadily in assets and revenues, although PAT dipped slightly in FY25.
Key Performance Indicators (as of Mar 31, 2025)
- Return on Equity (ROE): 14.72%
- Debt/Equity: 5.85
- Price-to-Book Value: 3.72
- Pre-IPO Earnings Per Share (EPS): 27.41
- Post-IPO Earnings Per Share (EPS): 26.29
- Pre-IPO Price-to-Earnings Ratio (P/E): 27
- Post-IPO Price-to-Earnings Ratio (P/E): 28.15
Company Financial Snapshot
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets (₹ Cr) | 1,08,663.29 | 92,556.51 | 70,050.39 |
| Revenue (₹ Cr) | 16,300.28 | 14,171.12 | 12,402.88 |
| Profit After Tax (₹ Cr) | 2,175.92 | 2,460.84 | 1,959.35 |
| EBITDA (₹ Cr) | 9,512.37 | 8,314.13 | 6,251.16 |
| Net Worth (₹ Cr) | 14,936.50 | 12,802.76 | 10,436.09 |
| Reserves and Surplus (₹ Cr) | 15,023.97 | 12,949.63 | 10,645.57 |
| Total Borrowing (₹ Cr) | 87,397.77 | 74,330.67 | 54,865.31 |
HDB Financial Ltd.: Industry Outlook
- The Indian NBFC sector remains a crucial pillar for financial inclusion, especially in semi-urban and rural areas.
- Demand for MSME loans, commercial vehicle finance, and consumer credit is growing, supported by India’s economic expansion.
- Increasing digital adoption and phygital models help NBFCs scale and improve credit penetration.
- Regulatory reforms and stricter supervision continue to reshape the sector’s risk management and compliance frameworks.
HDB Financial’s wide reach, diversified portfolio, and operational strength position it well to benefit from these trends.
Use of IPO Proceeds
| Objective | Expected Amount (₹ Cr) |
| Augmentation of Tier-I Capital for future capital needs (including onward lending under Enterprise Lending, Asset Finance, Consumer Finance) | As required |
Conclusion
HDB Financial Services Ltd. IPO provides an opportunity for investors to gain exposure to a leading NBFC serving India’s underbanked and emerging markets. The company’s solid financial foundation, extensive branch network, and focus on retail and MSME segments offer potential for long-term growth.
However, investors should evaluate its high leverage, sectoral regulatory risks, and the competitive landscape before making investment decisions. The IPO could be suited for investors seeking medium- to long-term participation in India’s growing credit market.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
