India’s biggest NBFC IPO is here and it is making quite the buzz. Backed by private banking giant HDFC Bank, HDB Financial Services is set to launch its public offer worth Rs 12,500 crore next week.
From listing rules to use of funds and share price bands, here is everything you need to know about this headline-making issue.
HDB Financial Services IPO date
The HDB Financial IPO will open for general investors from June 25 – 27. The anchor investor portion will be open a day prior, on June 24. Allotment of shares is expected by June 30, and the stock is likely to list on BSE and NSE on July 2.
HDB Financial IPO: Largest NBFC issue at Rs 12,500 crore
This is not a small-ticket issue. HDB Financial aims to raise a whopping Rs 12,500 crore, making it India’s largest-ever IPO by a non-banking financial company (NBFC).
The offer includes Rs 2,500 crore fresh issue and Rs 10,000 crore Offer for Sale (OFS) by HDFC Bank, which currently owns 94.3% of the company.
HDB Financial IPO: IPO price band, lot size and valuation
The price band for the IPO is between Rs 700- 740 per share. At the higher end, HDB Financial is eyeing a post-issue valuation of Rs 62,000 crore ($7.2 billion). Investors need to bid for at least 20 shares or multiples thereof.
HDB Financial IPO: GMP
In the grey market, ahead of the issue opening, HDB Financial shares are trading at a premium of Rs 83. This indicates a potential listing price of Rs 823, which is around 11% higher than the upper price band of Rs 740. However, this is not the actual listing price and may fluctuate based on market sentiment.
HDB Financial IPO: RBI rule behind the listing
HDB Financial’s public debut is not just a corporate move, it is a regulatory requirement. HDB Financial is classified as an “Upper Layer NBFC” under RBI rules, which means it must go public by September 2025. This IPO ensures it meets the deadline.
HDB Financial Services: Business model
HDB Financial offers a mix of retail and SME-focused financial products such as offering loans to individuals and small businesses. It focuses on vehicle finance, loans against property, and SME lending. It has a retail presence with 1,680 branches spread across India.
HDB Financial IPO: How will it use the funds?
The Rs 2,500 crore raised from fresh shares will help HDB strengthen its Tier-1 capital base. In simple terms, this means the company will use the money to lend more and grow its loan book in the future.
HDB Financial IPO: Who’s running the show?
This IPO has a big league of bankers behind it. Names like Goldman Sachs, Jefferies, JM Financial, Morgan Stanley, Nomura, and IIFL are among the 12 investment banks managing the issue. Cyril Amarchand Mangaldas is the legal advisor, and Link Intime is handling the share allotment process.