HDB Financial Services Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the HDB Financial Services Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹740
Per ShareLot Size
20 Shares
Minimum Investment
₹14,800
Issue Size
₹12,500 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
HDB Financial Services Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
94.04%
Promoter Holding (Post-Issue)
74.35%
Issue Type
Book Building
ISIN
INE756I01012
About the Company
HDB Financial Services Limited is the seventh largest leading, diversified retail-focused non-banking financial company ("NBFC") in India in terms of the size of Total Gross Loan book, at Rs. 902.2 billion as at March 31, 2024, amongst our NBFC peers according to the CRISIL Report. The Company is categorized as an Upper Layer NBFC ("NBFC-UL") by the RBI pursuant to a certificate of registration (N.01.00477) dated December 31, 2007 and is registered with the IRDAI as a corporate agent (composite) pursuant to a certificate of renewal registration dated March 10, 2025 bearing registration number CA0095. The Upper Layer comprises of NBFCs that are specifically identified by the RBI as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology, as mentioned by the RBI from time to time. Further, the top ten eligible NBFCs in terms of their asset size shall always reside in the upper layer, irrespective of any other factor. The Company offers lending products through its three business verticals: Enterprise Lending, Asset Finance and Consumer Finance. The Company also offers business process outsourcing services such as back-office support services, collection and sales support services to its Promoter as well as fee-based products such as distribution of insurance products primarily to its lending customers. The table below sets forth the loan book for each of its three verticals and the top three products under each of such verticals as at March 31, 2025.
Industry Overview
NBFCs have evolved in size, operations, technological sophistication and variety of financial services and products, growing from under Rs. 2 trillion AUM in Fiscal 2000 to Rs.48 trillion in Fiscal 2025. In the financial sector ecosystem, NBFCs compete with banks, micro-finance companies, digital lending platforms and informal financiers. During Fiscals 2019 to 2025, NBFC credit grew at an estimated CAGR of 13.2%. CRISIL Intelligence expects NBFC credit to grow at 15-17% between Fiscal 2025 and Fiscal 2028 primarily driven by growth in the retail, MSME and corporate segments.
Company History
The Company was incorporated as `HDB Financial Services Limited' under the Companies Act, 1956 pursuant to a certificate of incorporation dated June 4, 2007 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli at Ahmedabad ("RoC") and commenced operations pursuant to a certificate for commencement of business dated July 31, 2007 issued by the RoC. The RBI granted a certificate of registration dated December 31, 2007 to the Company to carry on the business of a non-banking financial institution without accepting public deposits.
Products & Services
- The Company is the seventh largest leading, diversified retail-focused non-banking financial company ("NBFC") in India.
Growth Strategy
- Diversify and expand its addressable customer segments by widening and enhancing its product offering.
- Continue to expand its pan-India omni-channel distribution network
- Continue to invest in technology, data analytics and artificial intelligence to further improve customer experience, increase organisational productivity and decrease costs.
- Continue to diversify its borrowing profile to optimise borrowings costs.
- Further strengthen and improve its robust risk management framework as well as underwriting and collections capabilities to minimise the risk of credit losses
- Continue to attract, upskill and retain talented employees by strengthening its organizational culture.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 168,918,917 equity shares of face value of Rs.10 each ("Equity Shares") of HDB Financial Services Limited ("company") for cash at a price of Rs.740 per equity share of face value of Rs. 10 each (including a share premium of Rs.730 per equity share) ("offer price") aggregating to Rs. 12500.00 crores ("the offer" ) comprising a fresh issue of 33,783,782 equity shares of face value of Rs.10 each aggregating to Rs. 2500.00 crores by the company ("fresh issue") and an offer for sale of 135,135,135 equity shares of face value of Rs.10 each aggregating to Rs. 10000.00 crores by HDFC Bank Limited ("promoter selling shareholder", and such equity shares, the "offered shares") ("offer for sale", and together with the fresh issue, the "offer"). The offer included a reservation of 2,70,270 equity shares of face value of Rs.10 each (constituting 0.03% of the post-offer paid-up equity share capital of our company) aggregating to Rs.20.00 crores for subscription by eligible employees (as defined hereinafter) (the "employee reservation portion") and a reservation of 16,891,891 equity shares of face value of ? 10 each (constituting 2.03% of the post-issue paid-up equity share capital) aggregating to Rs. 1250.00 crores for subscription by eligible hdfc bank shareholders ("hdfc bank shareholder reservation portion"). The offer less the employee reservation portion and hdfc bank shareholder reservation portion is hereinafter referred to as the "net offer". the offer and the net offer constitutes 20.30% and 18.24% of the post-offer paid-up equity share capital, respectively.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Highly granular retail loan book, bolstered by a large and rapidly growing customer base with a focus on serving the underbanked customer segments.
- Large, diversified and seasoned product portfolio with a sustainable track record of diversification, growth and profitability through the cycles.
- Tailored sourcing supported by an omni-channel and digitally powered pan-India distribution network.
- Comprehensive systems and processes contributing to robust credit underwriting and strong collections.
- Advanced technology tools driving enhanced customer experience and efficiency across each stage of the customer lifecycle.
- Its Promoter may be required to significantly reduce its ownership in the Company, i.e., to less than 20% (or any such higher percentage with prior RBI approval) on account of overlapping business with its Promoter and one of the members of its Promoter Group if the draft circular issued by the RBI on October 4, 2024 is implemented in its current form, which may have a material adverse impact on its business operations, financial position and share price.
- Its Gross Stage 3 Loans amounted to 2.26% of Total Gross Loans as at March 31, 2025, which was an increase from 1.90% as at March 31, 2024. Non-payment or default by its customers, the company inability to provide adequate provisioning coverage for non-performing assets or change in regulatorily mandated provisioning requirements may adversely affect its financial condition and results of operations.
- As at March 31, 2025, unsecured loans comprised 26.99% of its Total Gross Loans, which is a decrease from 28.66% as at March 31, 2024. The company unsecured loan portfolio is not supported by any collateral that could help ensure repayment of the loan, and in the event of non-payment by a borrower of one of these loans, its may be unable to collect the unpaid balance.
- As at March 31, 2025, secured loans comprised 73.01% of its Total Gross Loans. The value of collateral for its secured loans may decrease or the company may experience delays in enforcing collateral, impacting its ability to fully recover the collateral value, thereby exposing it to potential loss that could adversely affect its business, results of operations, cash flows and financial condition.
- Its may face asset-liability mismatches in the future, which may cause liquidity concerns and consequently affect its profitability, cash flows, business, results of operations and financial condition.