HDB IPO: A Gateway to Investing in India’s Growing NBFC Sector

The Indian financial landscape is witnessing a transformative moment with the upcoming public issue of HDB Financial Services Limited. Positioned as a major player in the non-banking financial company (NBFC) space, HDB's market debut marks a critical milestone in the evolution of India’s retail-focused finance ecosystem. Notably, the IPO application process is further streamlined through HDFC Sky's One-Click IPO feature—a tool designed for swift and paperless access to public offerings. 

Understanding the HDB IPO Structure

The HDB IPO is set to open on June 25, 2025, and close on June 27, 2025. It comprises a book-built issue worth ₹12,500 crore, including a fresh issue of 3.38 crore shares (worth ₹2,500 crore) and an offer for sale of 13.51 crore shares (worth ₹10,000 crore). The price band ranges between ₹700 and ₹740 per share, with a minimum application lot size of 20 shares. This places the minimum retail investment at ₹14,800. Shares will be listed on both BSE and NSE, with the listing tentatively scheduled for July 2, 2025.

The HDB IPO is a landmark issue not only in terms of size but also because it reflects the company’s sustained growth and operational efficiency within the NBFC domain.

About HDB Financial Services Limited

Incorporated in 2007, HDB Financial Services is a subsidiary of HDFC Bank and operates a diverse retail lending portfolio. Its business is segmented into Enterprise Lending, Asset Finance, and Consumer Finance. Additionally, the company offers BPO services to its promoter, including back-office operations, collections, and sales support.

As of September 30, 2024, HDB had 1,772 branches across 1,162 towns and cities in India, supported by over 140,000 dealer touchpoints and 80+ brand partnerships. This widespread footprint plays a critical role in reaching underbanked and first-time borrowers across urban and rural India. The IPO provides an opportunity to observe how an established private NBFC enters the capital markets while maintaining its grassroots approach to credit delivery.

Financial and Operational Snapshot

HDB's loan portfolio is valued at ₹986.2 billion as of September 2024, spread evenly across its three verticals. Of the total, 71.08% of loans are asset-backed, highlighting its conservative yet expansive credit strategy. The company’s FY24 PAT stood at ₹24,608 million, with revenue of ₹141,711 million and a return on equity (ROE) of 19.55%.

The financial metrics signal a company that has found equilibrium between rapid growth and risk-adjusted profitability. In terms of the Mainboard IPO structure, HDB’s entry aligns with rising investor interest in retail lending and consumer finance-oriented NBFCs. Mainboard IPO participation will be available for institutional and retail categories alike, with clear allocations based on regulatory quotas.

Sectoral Context: India’s NBFC Growth Trajectory

NBFCs in India are on a growth trajectory fueled by financial inclusion efforts, digital penetration, and expanding middle-class income. Credit demand in the retail segment, including personal, vehicle, and MSME loans, is expected to grow at a CAGR of 15–17% through FY27.

HDB’s strategic positioning in this ecosystem, along with a disciplined risk framework and a wide geographical footprint, sets it apart from peers. It also has a digital edge—leveraging automated scorecards, digital onboarding, and AI-led underwriting—which strengthens operational efficiency.

Key IPO Metrics and Reservation

The IPO reserves 44.92% for Qualified Institutional Buyers (QIBs), 13.48% for Non-Institutional Investors (NIIs), and 31.44% for Retail Individual Investors (RIIs). Retail investors can apply for a minimum of 1 lot (20 shares) at the upper band, amounting to ₹14,800.

Employee and shareholder quotas account for a small percentage of the total issue. The total shares offered in the IPO stand at 16,89,18,919. The valuation pegs the company's earnings per share at ₹31.08 and a NAV of ₹173.3, indicating a solid asset base.

The IPO App can be used to access HDFC Sky and stay updated on bidding, allotment, and refund timelines for those tracking the issue.

Technology and Governance

The company is guided by a leadership team with over two decades of experience, with many senior members having been with HDB since its inception. Their combined expertise is reflected in how the company scaled to serve over 17.5 million customers while maintaining asset quality (GNPA at 1.90%).

Tech-driven operations are another pillar of HDB’s strategy. From app-enabled customer sourcing to data analytics in collections and performance monitoring, technology plays an integral role. This approach is supported by a backend risk framework involving over 4,500 underwriters and 12,000 collection agents.

How to Apply for the HDB Financial IPO Using HDFC Sky’s One-Click Feature

HDFC Sky’s One-Click IPO feature simplifies the entire IPO application journey, making it fast, efficient, and hassle-free. Investors exploring public issues across different categories—whether a Mainboard IPO or an SME IPO—can seamlessly apply using HDFC Sky’s One-Click IPO feature.

If you're planning to apply for the HDB Financial Services IPO, here’s how you can do it using this intuitive tool:

● Log in to HDFC Sky: Access your account by entering your credentials on the HDFC Sky platform.

● Access the IPO Section: Navigate to your profile, select "Indian Stocks," and click on the "IPO" tab.

● Select the IPO: Locate the HDB Financial Services IPO in the list and click on "Apply Now."

● Place Your Bid: Enter your preferred bid amount and adjust the application details as needed.

● Choose Payment Method: Select UPI as your payment option and proceed to make the payment.

● Approve UPI Mandate: Open your UPI app and authorise the payment request.

Confirm and Submit: Review your application and complete the process by submitting it.

Why Choose HDFC Sky’s One-Click IPO Feature?

● Quick and seamless process: Apply in a single click without paperwork or manual entries.

● Instant updates: Receive real-time alerts on application status, allotment results, and refunds.

● All-in-one platform: Track and manage all IPO applications from one unified dashboard.

● Anytime access: Apply conveniently through the HDFC Sky mobile app or web interface.

With HDFC Sky’s One-Click IPO feature, applying for the HDB Financial IPO becomes a smooth and time-saving experience, allowing investors to take timely action with confidence.

(The views, opinions, and claims in this article are solely those of the author’s and do not represent the editorial stance of The Assam Tribune)