HDB Financial Services IPO opens: Check what Anil Singhvi suggests for biggest NBFC issue of 2025

HDB Financial Services IPO: The much-awaited and the largest NBFC public issue of 2025- HDB Financial Services opens for subscription today. The Rs 12,500 crore initial public offering (IPO) will be available for bidding until June 27.

The issue primarily comprises two component a fresh issue of equity shares worth up to Rs 2,500 crore and an offer for sale worth Rs 10,000 crore by the parent company, HDFC Bank, which is also the promoter of HDB Financial Services.

IPO objective:

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The net proceeds from the issue will be deployed towards enhancing the NBFC's tier-I capital, aiding the company's future capital requirements across key business verticals, including Asset Finance, Consumer Finance and Enterprise Lending. The NBFC major is on its expansion spree and adding on its asset portfolio, while complying with the RBI's latest capital adequacy guidelines.

Book running lead managers

JM Financial, BNP Paribas, BofA Securities, Goldman Sachs, HSBC, IIFL, Jefferies India, Morgan Stanley, Motilal Oswal Investment Advisors, Nomura, Nuvama and UBS are some of the well-renowned financial institutions managing the IPO.

Should you subscribe to HDB Financial Services IPO?

Giving his view on the new public offer, Zee Business Managing Editor Anil Singhvi stated that investors can subscribe to the issue for reasonable listing gains and with a long-term investment perspective.

Backing his view, Singhvi listed some of the positives of the fresh IPO:

Positives:
Strong parentage of HDFC brand: The company is a subsidiary of the country's largest private bank, HDFC Bank, that currently holds around 94.6 per cent stake in HDB Financial. Now, even after the IPO, HDFC Bank will continue to hold majority stake in the company, with its holding expected to come down to around 74 per cent.

Diversified product portfolio: The company primarily operates across 3 segments including consumer finance, enterprise loan and asset finance.

Robust growth in customer base: The company is recording a robust growth in its customer base. As of March 31, 2025, the company catered to as many as 19.2 million customers, emerging as the second-largest NBFC by customer count.

Stable asset quality: The company's asset quality continued to be steady- with gross non-performing assets (GNPA) at 1.9 per cent and net NPA at 0.63 per cent in FY24.

Valuations reasonable. The expert finds IPO to be reasonably valued.