HDB Financial Services (HDBFS), a leading non-banking financial company (NBFC) and a subsidiary of HDFC Bank, is making headlines with its much-anticipated Initial Public Offering (IPO). Valued at a massive ₹12,500 crore, this IPO is poised to be one of India’s biggest public issues in recent years.
A Banking Giant’s Powerhouse
HDB Financial Services was established in 2007 and is nearly 95% owned by HDFC Bank. With over 1,900 branches across India, it caters to a diverse customer base of over 17.5 million individuals and businesses.
HDBFS operates across three main verticals:
- Consumer Lending: Personal loans, gold loans, two-wheeler and consumer durable finance
- Asset & Vehicle Finance: Commercial vehicles, tractors, construction equipment
- Business Loans: SME lending, loans against property, and working capital loans
The company is also involved in BPO services, such as collections, customer support, and document processing.
Strong Ratings, Steady Growth
HDBFS is among the few NBFCs in India rated AAA by CRISIL and CARE, reflecting strong financial health and parentage.
In FY24, it reported:
- Revenue: ₹78.9 billion
- Profit after tax: ₹11.7 billion
- Total assets: Over ₹1.01 trillion
- Loan book: Surpassing ₹1 lakh crore
Although Q3 FY25 showed a 27% YoY drop in net profit, largely due to rising provisioning and funding costs, the fundamentals remain strong with GNPA levels declining from 4.99% to 1.9% and Net NPA down to 0.63%.
IPO Details: Dates, Size & Valuation
- IPO Dates: June 25 to 27, 2025
- Price Band: ₹700 to ₹740 per share
- Issue Size: ₹12,500 crore (Fresh issue: ₹2,500 crore; OFS by HDFC Bank: ₹10,000 crore)
- Expected Valuation: around ₹80,000 crore
The Grey Market Premium (GMP) is trending around ₹83, suggesting a listing gain of over 11%.
This marks HDFC Group’s first IPO in six years, and comes in response to RBI’s mandate requiring large NBFCs to list by September 2025.
Tech-Driven, Future-Ready
HDBFS is rapidly digitizing operations with AI-led credit assessments, automated underwriting, and embedded finance tie-ups with OEMs and dealers. Its robust digital lending platform positions it well for scalable growth across Bharat.
It also benefits from HDFC Bank’s established network and customer base, giving it a competitive edge in acquisition and servicing.
Investor Outlook: Should You Subscribe?
- Strong brand and parentage
- Pan-India footprint
- Diverse lending portfolio
- Digital-first approach
Final Word
HDB Financial Services is not just another NBFC. It is a digitally-empowered, high-growth institution backed by India’s most trusted private lender. As it hits the public markets, all eyes will be on whether investors will fuel its next phase of growth.
Stay tuned to The News Drill for live updates, GMP changes, and listing day coverage.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult your financial advisor before investing.
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