HDB Financial Services Files RHP for ₹12,500 Crore IPO, Set to Open on June 25

HDB Financial Services Ltd., the non-banking finance arm of HDFC Bank, has taken a significant step toward public listing by filing a red herring prospectus (RHP) on Thursday for a ₹12,500 crore initial public offering.

IPO(initial public offering) will comprise a mix of fresh share issuance and an offer for sale by HDFC Bank, with subscription open from June 25 to June 27, 2025. This move marks a key development in the company’s expansion and capital-raising plans.

IPO Structure and Fund Utilisation

HDB Financial Services aims to raise ₹2,500 crore through a fresh issue of equity shares and ₹10,000 crore via an offer for sale by parent company HDFC Bank. The company has fixed a price band of ₹700 to ₹740 per share. A day before the IPO opening, the company will raise funds through an anchor investment round. 

According to the draft prospectus, proceeds from the fresh issue will be used to bolster the company’s Tier-I Capital base, ensuring it meets future capital requirements, particularly for onward lending and business growth. Additionally, a portion will go toward covering offer-related expenses.

The IPO is being led by a consortium of 12 prominent investment banks, including JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal, and UBS. Cyril Amarchand Mangaldas will act as the legal counsel, while Link Intime India Pvt. Ltd. will serve as the registrar for the issue.

Operational and Financial Performance

Established in 2007, HDB Financial Services is a key player in India’s retail-focused NBFC space, ranked among the largest by gross loan book size, according to a CRISIL report. The company operates across 3 primary verticals: enterprise lending, asset finance, and consumer finance. 

As of March 31, 2025, secured loans made up 73.01% of its gross loan portfolio, while unsecured loans accounted for the remaining 26.99%. The company’s total gross loans stood at ₹1,068.8 billion, with a robust CAGR of 23.54% between FY2023 and FY2025. Assets under management also reached ₹1 lakh crore in the same period.

For the year 2025, HDB Financial Services reported a net profit of ₹2,175.92 crore, slightly lower than the ₹2,460.84 crore reported the previous year but up from ₹1,959.35 crore in FY2023. 

Its income from operations stood at ₹16,300.28 crore in FY2025, compared to ₹14,171.12 crore in FY2024 and ₹12,402.88 crore in FY2023, indicating consistent revenue growth. 

Read More: LG Electronics Looks to Restart India IPO Plans by September!

Conclusion

HDB Financial Services’ proposed IPO reflects its strategic aim to strengthen its capital base and fund its expanding loan book. With its diversified lending model and robust financial performance, the company is positioned to attract considerable investor interest, marking a pivotal moment in its journey from a wholly owned HDFC Bank subsidiary to a listed financial entity.

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