HDB Financial IPO opens on June 25: Price band, issue size, key details; should you apply?

HDB Financial IPO: The initial public offering (IPO) of HDB Financial Services, the non-banking financial subsidiary of HDFC Bank, will open on Wednesday, June 25, 2025. The company has fixed the price band between Rs 700 to Rs 740 per equity share, each with a face value of Rs 10. The total issue size amounts of the IPO is 12,500 crore, indicating biggest IPO of the year so far. The public issue will conclude on Friday, June 27, 2025.

The IPO comprises a fresh issue of shares aggregating Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank. Post-offer, HDFC Bank will dilute a portion of its 94.36 per cent shareholding in the company while maintaining management control.

What should investors do?

Analysts at domestic brokerages have research on the firm, and advised what should investors do:

SBI Securities has recommended to subscribe the issue at the cut-off price. The brokerage said that the firm is well placed to register healthy growth going ahead, while witnessing an improvement in the asset quality. 

Canara Bank Securities has suggested investors to subscribing the IPO, citing that despite valuation concerns, the NBFC's strong brand, stable financials, rural reach, and niche positioning offer potential for medium to long-term investors.

Analysts at Sharekhan expected a healthy listing gains and remain assertive from a medium to long-term perspective. According to the brokerage, strong parentage and much smaller in size as compared its core peer (Bajaj Finance) provides a long runway for growth. 

"Additionally, favourable macro environment will act as tailwind for the sector in the near to medium term," analysts at Sharekhan said.

Similarly, analysts at Choice Broking have 'subscribe' rating on the issue due to several factors like robust brand franchise and
granular retail lending model, wide-reaching omni-channel distribution platform, and access to low-cost funding anchored by a AAA-rated credit profile.

Here are other details of the IPO:

HDB Financial IPO: Important Dates

HDB Financial IPO Allotment: Expected on June 30

HDB Financial IPO Refunds: Expected on July 1

HDB Financial IPO Listing Date on NSE & BSE: Expected on July 2, subject to approval from regulators

Company strengths

• Large Customer Base: As of September 30, 2024, the company served 17.5 million customers with small loans. This number has grown by about 28.2 per cent every year since March 2022.
• Strong Risk Management: About 4,500 people focus only on approving and collecting loans. They work separately from the sales team to keep lending disciplined.
• Support from HDFC Bank: Being part of HDFC Bank, India’s biggest private bank (with assets of ₹36.88 trillion as of September 30, 2024), gives it a strong brand name and solid support.

Risks to consider

• Economic Slowdown: If India’s economy slows down, it could affect business and loan repayments.
• Loan Defaults: More people failing to repay loans—especially unsecured ones—could hurt earnings.
• High Unsecured Loans: A large portion of loans are unsecured, which can be harder to collect.
• Dependence on HDFC Bank: Heavy reliance on HDFC Bank could create conflicts. If HDFC reduces its stake, it may affect business.
• Interest Rate Changes: Fluctuating rates could reduce profits from lending.
• Tough Competition: Growing competition might make it harder to grow or stay profitable.

How the money will be used

The money raised from the fresh issue will be used to strengthen the company’s Tier‑1 capital. This will support future lending and help meet RBI rules for listed NBFCs in the upper layer.