HDB Financial IPO: Check IPO Date, Live Subscription and Key Details
HDB Financial Services Limited is one of India's leading Non-Banking Financial Companies (NBFCs), classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI). It is a subsidiary of HDFC Bank Limited. The company offers a wide range of lending solutions across three primary business verticals: Enterprise Lending (secured and unsecured business loans to MSMEs), Asset Finance (secured loans for new and used commercial vehicles, construction equipment, and two-wheelers), and Consumer Finance (secured and unsecured personal loans, consumer durable loans, digital and lifestyle product financing, and gold loans).
Min Investment
₹14800
Price Range
₹700.00-740.00
Issue Size
₹12,500.00 Cr
IPO Type
Mainboard
Key Metrics
Check Live GMP
Face Value
₹10
EPS
26.29
P/E Ratio
28.15
RoNW
14.57%
ROE
14.72%
Debt to Equity
5.85
Timeline
IPO Opens
25 Jun
IPO Closes
27 Jun
Allotment
30 Jun
Listing
2 Jul
IPO Objectives
- Augmentation of the Company’s Tier – I Capital base to meet their Company’s future capital requirements including onward lending under any of the Company’s business verticals i.e. Enterprise Lending, Asset Finance and Consumer Finance.
Strengths
- Strong Parentage and Brand: HDB Financial Services is a subsidiary of HDFC Bank, India's largest private sector bank, providing significant institutional trust, strong governance, risk management, and a high credit rating (CRISIL AAA/Stable/CRISIL A1+).
- Highly Granular Retail Loan Book: Focus on serving underbanked customer segments with small-ticket, secured, and sustainable lending, leading to a large and rapidly growing customer base (17.5 million customers as of Sep 30, 2024).
- Large, Diversified, and Seasoned Product Portfolio: Offers 13 distinct lending products across enterprise lending, asset finance, and consumer finance, with no single product exceeding 25% of the total loan book, demonstrating strategic diversification and growth across cycles.
- Omni-channel and Digitally Powered Pan-India Distribution Network: Operates a 'phygital' model with 1,771 branches across over 1,170 towns (with over 70% in Tier 4+ towns), supported by 140,000+ retailer-dealer touchpoints and digital platforms, ensuring deep market penetration and operational scalability.
- High-Quality Liability Franchise: Access to low-cost, diversified borrowing sources (from various banks, mutual funds, insurance companies), enabling competitive lending rates and financial stability.
Weaknesses
- Decline in Profitability: While revenue has grown, profit after tax (PAT) dropped by 12% between FY24 and FY25, and Net Interest Margins (NIM) have compressed (from 8.3% in FY23 to 7.6% in FY25), raising concerns about sustained profitability and increasing credit costs.
- Asset Quality Moderation: Gross Stage 3 loans (NPA) increased to 2.26% in FY25 from 1.90% in FY24, indicating a moderation in asset quality, especially in the unsecured loan portfolio which is not supported by collateral.
- Overlapping Business with Promoter: Regulatory guidelines may require HDFC Bank to significantly reduce its ownership in HDB Financial Services (potentially to less than 20%) due to overlapping business activities, which could impact the company's strategic direction and perceived stability.
- Dependence on Parent (HDFC Bank): While parentage is a strength, significant reliance on HDFC Bank for business process outsourcing (BPO) services (2.44% of PBT in FY25) means discontinuation of these services could adversely impact non-lending revenue.
- Unsecured Loan Portfolio Risk: Nearly 27% of the gross loan book is unsecured, lacking collateral, which increases recovery risk in case of defaults.
Financial Performance
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets (₹ Cr.) | 108663.29 | 92556.51 | 70050.39 |
| Revenue (₹ Cr.) | 16300.28 | 14171.12 | 12402.88 |
| PAT (₹ Cr.) | 2175.92 | 2460.84 | 1959.35 |
| Net Worth (₹ Cr.) | 14936.5 | 12802.76 | 10436.09 |
Peer Comparison
| Company | P/B Ratio | P/E Ratio | RONW (%) | Net Worth (₹ Cr.) |
|---|---|---|---|---|
| HDB Financial Services | 3.72 | 28.15 | 14.72 | 14936.5 |
| Bajaj Finance Limited | 5.89 | 34.22 | 17.21 | 76695 |
| Sundaram Finance Ltd. | 4.12 | 28.97 | 14.24 | 11078 |
Subscription Details
Daily Bids Status
| Date | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.01x | 0.93x | 58.64x |
| NII | 0.81x | 2.43x | 10.55x |
| S-HNI | 0.74x | 2.09x | 6.77x |
| B-HNI | 0.83x | 2.54x | 12.44x |
| RII | 0.33x | 0.69x | 1.50x |
| EMP | 1.86x | 3.14x | 6.02x |
| Total | 0.40x | 1.23x | 17.64x |
Overall Subscription Statistics
| Category | Shares Offered | Shares Bid | Bid Amount (₹ Cr) |
|---|---|---|---|
| QIB | 3,03,51,352 | 1,77,96,82,480 | 1,31,696.50 |
| NII | 2,27,63,514 | 24,01,58,360 | 17,771.72 |
| Small NII | 75,87,838 | 5,13,84,820 | 3,802.48 |
| Big NII | 1,51,75,676 | 18,87,73,540 | 13,969.24 |
| RII | 5,31,14,865 | 7,96,60,780 | 5,894.90 |
| EMP | 2,70,270 | 16,25,860 | 120.31 |
| Total | 12,33,91,893 | 2,17,68,66,760 | 1,61,088.14 |
Company Details
- Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad, Gujarat-380009, India
- +91 22 4911 6350
- investorcommunications@hdbfs.com
- http://hdbfs.com/
Registrar Details
- MUFG Intime India Private Limited (Link Intime)
- +91-22-4918 6270
- hdbfinancial.ipo@linkintime.co.in
- https://linkintime.co.in/Initial_Offer/public-issues.html