HDB Financial Services IPO : HDB Financial Services , an NBFC backed by HDFC Bank , opened its IPO subscription on Wednesday. The organisation seeks to secure Rs 12,500 crore in what stands as one of the largest public offerings in India this year. The launch coincides with heightened market interest in financial sector listings .
HDB Financial ranks amongst India's prominent NBFCs, with its loan portfolio reaching Rs 1.06 lakh crore as of March 31, 2025. The organisation recorded Rs 2,176 crore in net profits for FY25, marking substantial growth from Rs 1,359 crore in the previous year.
The company maintains robust asset quality metrics, with GNPA at 2.49% and net NPA at 1.38%, reflecting sound performance for a retail-focused NBFC, according to an ET report.
The organisation operates extensively across India through 1,700 branches in 1,200 cities and towns, serving over 1.9 crore customers. Its services encompass secured and unsecured personal loans, gold loans, and SME financing.
HDB Financial Services IPO Details, GMP
HDB Financial Services IPO subscription period extends until June 27. The company has established a price band of Rs 700 to Rs 740 per share. The current GMP is approximately Rs 74, representing a 10% premium above the issue price.
The offering comprises a fresh issue of Rs 2,500 crore alongside an OFS of Rs 10,000
The initial public offering prices HDB Financial at 3.7 times the projected FY25 book value at the price band's upper limit. This valuation appears justified, given its operational track record and the strong association with HDFC Bank, the report said.
Leading financial institutions have responded positively to the offering. SBI Securities, Ventura Securities and Anand Rathi have recommended 'Subscribe', highlighting the company's robust core metrics, quality of assets and future expansion potential. "We believe the IPO is fairly priced given the company's improving profitability, robust risk management and capital adequacy," states Ventura's analysis according to the ET report.
Anand Rathi's assessment notes: "The IPO offers an opportunity to invest in a high-quality, retail-focused NBFC that benefits from HDFC Bank's reach, reputation and systems. The improving return ratios and earnings visibility make it a compelling long-term bet."
In its note on the IPO, Geojit Investments says, “At the upper price band of ₹740, HDB is available at a P/B ratio of 3.4x (FY25-post issue basis), which appears to be fairly priced compared to its peers. Given its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, customer expansion, asset quality, and better growth prospects, we recommend a "Subscribe" rating on a long term basis.”
The fresh issue proceeds will strengthen HDB Financial's capital foundation to support future credit operations. The offer for sale proceeds will be directed to HDFC Bank. The parent institution's ownership will decrease post-IPO to meet regulatory requirements.
The shares are scheduled to begin trading on the NSE and BSE during July's first week.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
HDB Financial ranks amongst India's prominent NBFCs, with its loan portfolio reaching Rs 1.06 lakh crore as of March 31, 2025. The organisation recorded Rs 2,176 crore in net profits for FY25, marking substantial growth from Rs 1,359 crore in the previous year.
The company maintains robust asset quality metrics, with GNPA at 2.49% and net NPA at 1.38%, reflecting sound performance for a retail-focused NBFC, according to an ET report.
The organisation operates extensively across India through 1,700 branches in 1,200 cities and towns, serving over 1.9 crore customers. Its services encompass secured and unsecured personal loans, gold loans, and SME financing.
HDB Financial Services IPO Details, GMP
HDB Financial Services IPO subscription period extends until June 27. The company has established a price band of Rs 700 to Rs 740 per share. The current GMP is approximately Rs 74, representing a 10% premium above the issue price.
The offering comprises a fresh issue of Rs 2,500 crore alongside an OFS of Rs 10,000
The initial public offering prices HDB Financial at 3.7 times the projected FY25 book value at the price band's upper limit. This valuation appears justified, given its operational track record and the strong association with HDFC Bank, the report said.
Leading financial institutions have responded positively to the offering. SBI Securities, Ventura Securities and Anand Rathi have recommended 'Subscribe', highlighting the company's robust core metrics, quality of assets and future expansion potential. "We believe the IPO is fairly priced given the company's improving profitability, robust risk management and capital adequacy," states Ventura's analysis according to the ET report.
Anand Rathi's assessment notes: "The IPO offers an opportunity to invest in a high-quality, retail-focused NBFC that benefits from HDFC Bank's reach, reputation and systems. The improving return ratios and earnings visibility make it a compelling long-term bet."
In its note on the IPO, Geojit Investments says, “At the upper price band of ₹740, HDB is available at a P/B ratio of 3.4x (FY25-post issue basis), which appears to be fairly priced compared to its peers. Given its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, customer expansion, asset quality, and better growth prospects, we recommend a "Subscribe" rating on a long term basis.”
The fresh issue proceeds will strengthen HDB Financial's capital foundation to support future credit operations. The offer for sale proceeds will be directed to HDFC Bank. The parent institution's ownership will decrease post-IPO to meet regulatory requirements.
The shares are scheduled to begin trading on the NSE and BSE during July's first week.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
You may also like
'Credibility up for auction': Iran slams IAEA; Tehran lawmakers vote to cut ties with nuclear watchdog
RSS workers tortured in jails during Emergency, at least 100 died: Sunil Ambekar
New nuclear threat: Pakistan developing intercontinental ballistic missile that could hit US, says report
MP: 2 dead as tunnel collapses near Mhow
'Pakistan Ready For Dialogue With India On Kashmir, Water, Trade and Terror': PM Shehbaz Sharif
