HDB Financial Services Announces Price Band: Key Things To Know About India’s Biggest NBFC Public Issue

HDB Financial Services IPO: The price band for HDB Financial Services Initial Public Offer (IPO) has been finalised on June 21. The price band for HDB Financial Services IPO has been set at Rs 700 to Rs 740 per share. The public issue of HDB Financial Services Ltd is slated to open for subscription on June 25. HDB Financial Services operates as a retail-focused, non-banking financial company (NBFC) and offers business process outsourcing (BPO) services to HDFC Bank, along with services such as the distribution of insurance products to borrowers. Here’s a look at some key details investors should know before the public issue opens for bidding.

HDB Financial Services IPO: Issue Size, Lot Size, and Minimum Investment

HDB Financial IPO consists of a fresh issuance of 3.38 crore shares amounting to Rs 2500 crore and an offer-for-sale by HDFC Bank, the promoter of the company. The OFS component comprises 13.51 crore shares and aggregates to Rs 10,000 crore. Cumulatively, HDB Financial Services plans to raise Rs 12,500 through the public issue.

Notably, the HDB Financial Services IPO is the biggest public issue so far this year in terms of offer size. The fundraise is also the biggest public issue ever made by an NBFC in the history of the Indian primary market.

Retail investors can apply for the NBFC’s public issue by placing bids for a minimum of one lot consisting of 20 shares. The minimum investment required to invest in the issue is Rs 14,000 for retail individual investors. On the other hand, Small Non-Institutional Investors (SNIIs) can bid for a minimum of 14 lots or 280 shares, which aggregates to an investment of Rs 2,07,200. Big Non-Institutional Investors can bid for a minimum of 68 lots or 1,360 shares, which aggregate to an investment of Rs 10,06,400.

HDB Financial Services: Key Financials and Key Competitors

HDB Financial Services’ revenue increased more than 15 per cent to Rs 16,300.28 crore in FY 2024-25 against Rs 14,171.12 crore in FY 2023-24. However, the NBFC’s profit-after-tax declined by 11.57 per cent to Rs 2175.92 crore in FY 2024-25 compared to Rs 2460.84 crore in the preceding fiscal. The networth of HDB Financial Services in the fiscal under review surged by over 16 per cent to Rs 14936.5 crore compared to Rs 12802.76 crore in the preceding fiscal.

HDB Financial Services said in its Red Herring Prospectus (RHP) that its primary competitors include both NBFCs and banks like Aditya Birla Finance Ltd, Bajaj Finance Ltd, Cholamandalam Investment and Finance Company Ltd, L&T Finance Ltd, Mahindra & Mahindra Finance Ltd, Shriram Finance Ltd, Sundaram Finance Ltd, and Tata Capital Ltd.

HDB Financial Services: Business Model

HDB Financial Services said in its RHP that it's a diversified retail-focused non-banking financial company (NBFC). The company said that it is classified as an Upper Layer NBFC (NBFC-UL). HDB Financial Services is engaged in providing lending products in three business verticals, namely: Enterprise Lending, Asset Finance, and Consumer Finance.

The company mentioned in the RHP that it provides its lending services to underserved and underbanked customers who are new to credit or have no credit history. The NBFC said that as of March 31, 2025, more than 80 per cent of its branches were located outside India’s 20 largest cities by population.

HDB Financial Services IPO: Key Strengths and Weaknesses

Here’s a look at some key strengths of HDB Financial Services IPO based on the company’s RHP:

The NBFC mentioned in its RHP that it has a granular retail loan book, which is backed by a growing customer base.

HDB Financial Services also said in its draft papers that it has put in place comprehensive systems and processes that contribute to robust credit underwriting and lead to strong collections.

Additionally, the company claimed that it uses advanced technology tools to drive an enhanced customer experience and enhance efficiency across the customer lifecycle.

Here’s a look at some risks HDB Financial Services IPO faces based on the RHP:

The company mentioned in the RHP that it is subject to several statutory and regulatory approvals for operating its business, and its inability to obtain or renew them can adversely affect its business and cash flows

The NBFC said in the RHP that it operates in an extremely competitive environment and faces stiff competition from both established banks and new NBFCs and fintech start-ups. In rural areas, the company also faces competition from private, unorganised financiers. The company’s inability to compete effectively can affect its business negatively.

HDB Financial Services mentioned that its lending products are affected by seasonality. This seasonality, in turn, can affect the results of operations for the NBFC. Typically, demand for consumer finance products rises during the festive season. On the other hand, the demand for asset finance products decreases during the same period.