HDB Financial Services IPO GMP, Price, Date, Allotment Status

HDB Financial Services is one of the leading retail-focused Non-Banking Financial Services (NBFC) companies in India. The HDB Financial Services launched its Initial Public Offering (IPO) on 25 June 2025, aiming to raise 12,500 Cr, the highest amount since October 2024. This marks a significant milestone in the NBFC sector and also the highest-valued IPO in the past ten Months.

In this article, let's explore HDB Financial Services IPO, GMP, key timeline, allotment status, and more. 

HDB Financial Services IPO Details

HDB Financial Services aimed to raise 12,500 Cr via this IPO with a fresh issue of shares of 10,000 Cr and Offer For Sale (OFS) worth 2,500 Cr with a face value of ₹10 each. This IPO was set to open on 25 June 2025 and close on 27 June 2025, and was set to be listed on both the exchanges, NSE & BSE, on 2 July 2025 at 10:00 am.

HDB Financial Services IPO Key Timeline

Key IPO Details:

• IPO Open Date: June 25, 2025
• IPO Close Date: June 27, 2025
• Issue Size: ₹12,500.00 Crores (16,89,18,918)
• Fresh Issue: ₹10,000 Crores (3,37,83,783)
• Offer for Sale: ₹2,500 Crores (13,51,35,135)
• Face Value: ₹10 per equity share
• Price Band: ₹700 to ₹740 per share
• Lot Size: 20 shares
• Minimum Investment (Retail): ₹14,800
• Minimum Investment (sHNI): ₹2,07,200
• Minimum Investment (bHNI): ₹10,06,400 
• Market Maker Portion: Not applicable (mainboard IPO)
• IPO Reservation:
• Qualified Institutional Buyers (QIB): Not more than 50%
• Non-Institutional Investors (NII/HNI): Not less than 15%
• Retail Investors: Not less than 35%
• UPI Mandate Confirmation Cut-off: 5:00 PM on June 27, 2025

Investors can apply through ASBA (Application Supported by Blocked Amount) via their bank’s net banking, UPI through registered brokers, or offline forms submitted through stockbrokers. 

The IPO is managed by JM Financial Limited, BofA Securities India Limited, HSBC Securities and Capital Markets (India) Private Limited, Goldman Sachs (India) Securities Private Limited, IIFL Securities Limited, Jefferies India Private Limited, Morgan Stanley India Company Private Limited etc… as book-running lead managers, with MUFG Intime India Private Limited (Link Intime) as the registrar.

About HDB Financial Services Limited

HDB Financial Services Limited (HDBFS) was incorporated in 2007, and it has their headquarters in Mumbai, Maharashtra. It is one of the leading Non-Banking Financial Companies (NBFCs) in India, and it was a subsidiary of HDFC Bank Limited, which is the biggest bank in India as per market capitalisation.

HDB Financial Services provides a wide range of financial products and services, including lending and business process outsourcing (BPO), serving both individual and business clients across urban and semi-urban areas.

Key Highlights  

Market Leadership: HDBFS is India’s 7th largest NBFC by total gross loan book, with assets under management (AUM) of approximately ₹1,10,000 crore as of FY25. It has achieved a loan book CAGR of over 20% in recent years.  

Regulatory Status: HDB Financial Services was registered with the Reserve Bank of India (RBI) as a non-deposit-taking, systemically important Upper Layer NBFC, and secured with CARE AAA and CRISIL AAA ratings for long-term debt and bank facilities, and an A1+ rating for short-term debt and commercial papers.

Network: As of September 30, 2024, HDBFS operates 1,772 branches across 1,162 towns in 31 states and union territories, with over 80% of branches located outside major metropolitan areas. 

It has partnerships with over 80 brands, original equipment manufacturers (OEMs), and 140,000+ retailer and dealer touchpoints.

Social Initiatives: Under the CSR initiatives, HDB Financial Services does social services like Transport Aarogyam Kendra, which provides physiotherapy and healthcare for truckers, alongside other community-focused programs promoting health in underserved areas.  

Product Portfolio

HDBFS operates in three core verticals:  

Enterprise Lending (39.85%): Under the Enterprise lending, HDB Financial Services has secured & unsecured loans for micro, small, and medium enterprises (MSMEs) to support business growth and working capital needs.  

Asset Finance (37.36%): As part of Asset Finance, HDBFS has secured loans for income-generating assets such as commercial vehicles, construction equipment, and tractors, primarily for transportation and heavy machinery sectors.  

Consumer Finance (22.79%): Under the Consumer Finance Category of HDBFS it has secured and unsecured loans for consumer goods (white goods like washing machines, brown goods like televisions, digital products like mobile phones), vehicles, and personal expenses.  

Fee-Based Products: HDBFS was involved in the distribution of life and general insurance products for HDFC Life and HDFC Ergo as a registered corporate insurance agent.

BPO Services: Back-office support (forms processing, document verification, finance, and accounting), contact centre management, outbound marketing, and collection services, primarily for HDFC Bank. Operates 18 collection call centres with approximately 5,500 seats.  

Competitive Strengths

• Strong Parentage: HDBFS was backed by HDFC Bank, leveraging its brand reputation and ecosystem for growth and credibility.  
• Extensive Reach: A robust “phygital” model combining physical branches with digital onboarding and collection processes, ensuring wide accessibility.  
• Diversified Portfolio: Comprehensive offerings across enterprise, asset, and consumer finance, addressing diverse customer needs.  
• Digital Innovation: Recognised for tech-driven processes, including omni-experience innovation (IDC Digital Transformation Awards, 2020) and a strong digital lending platform.  
• Customer-Centric Approach: HDBFS has been awarded as the ET BFSI Award for Excellence in Customer Service in 2019, with a focus on first-time borrowers and underserved segments.
• Financial Stability: AAA-rated funding access ensures competitive borrowing costs, supported by strong gross NPA/NNPA ratios and high provisioning cover.
• Experienced Management: Led by CEO Ramesh Ganesan, with a skilled team driving operational excellence and governance.

Challenges

• Data Breach: In March 2023, HDBFS experienced a data breach that exposed the personal information of over 70 million customers, including names, email addresses, and loan details.
• Regulatory Compliance: Non-compliance with RBI regulations could lead to penalties or restrictions, posing operational risks.
• Competitive Market: Faces intense competition in India’s lending services sector, requiring continuous innovation to maintain market share.

Financial Performance

Key Performance Indicators (KPIs)

• Market Capitalisation: ₹61,400 Crores (at upper price band)
• Revenue Growth: Revenue has increased to 15.03% from ₹14,171.12 Cr in FY23 to ₹16,300.28 Cr in FY24
• PAT Decline: 11.58% from ₹2,460.84 Cr in FY23 to ₹2,175.92 Cr in FY24, due to interest rate volatility
• Assets Under Management (AUM): HDBFS has an ₹1,10,000 Cr of  assets under management in FY25
• Debt: Not explicitly stated in recent data, the company maintains strong capital adequacy.

The company’s steady revenue growth reflects its strong position in the NBFC sector, but interest rate fluctuations have impacted profitability, posing a potential risk.

HDB Financial Services IPO GMP Today

The Grey Market Premium (GMP) for the HDB Financial Services IPO today is ₹74, indicating a potential listing price of ₹814 per share (10% above the upper price band of ₹740). The GMP has shown volatility, ranging from ₹46 (June 23) to a high of ₹104.50 in recent days, reflecting strong but cautious investor sentiment.

The GMP suggests limited short-term listing gains are possible for this IPO, with some analysts noting low oversubscription potential due to the big issue size.

Things to Consider Before Applying HDB Financial Services IPO

Positives:

• Strong Parentage: The company is backed by HDFC Bank, enhancing credibility and market reach.
• Diversified Portfolio: HDBFS has a balanced loan book across three verticals, which helps to reduce concentration risk.
• Robust Growth: Revenue CAGR of ~15% and a strong AUM of ₹1,10,000 Cr.
• Attractive Valuation: P/B ratio of 3.4x is lower than peers like Bajaj Finance, making it reasonably priced.
• Regulatory Compliance: IPO aligns with RBI’s mandate for upper-layer NBFCs to list by September 2025.

Risks:

• Profitability Pressure: PAT declined in FY24 due to interest rate volatility, which could persist.
• High OFS Component: ₹10,000 Cr OFS means promoters are selling their stake, and no direct benefit to the company from 80% of the issue proceeds.
• Market Sentiment: Tepid retail demand in recent IPOs due to aggressive pricing and market corrections.
• GMP Volatility: A significant GMP discount from unlisted market prices suggests limited short-term gains.

Long-term investors may find the IPO appealing due to HDB’s strong fundamentals and growth potential in the NBFC sector. However, retail investors should weigh the risks of interest rate fluctuations and market sentiment before applying.

How to Apply for HDB Financial Services IPO?

Investors can apply for the HDB Financial Services IPO through the following methods:

• Online ASBA: Use your bank’s net banking platform to apply via ASBA.
• UPI: Apply through UPI using a registered broker or trading app
• Offline: Submit a physical application form through your stockbroker.

Steps to Apply via Broker:

• Log in to your stockbroker’s app or website.
• Navigate to the IPO section and select “HDB Financial Services IPO.”
• Enter your UPI ID, quantity (minimum 20 shares), and price (preferably the cutoff price of ₹740).
• Submit the application and confirm the UPI mandate by 5:00 PM on June 27, 2025.

HDB Financial Services IPO Allotment Status

The HDB Financial Services IPO allotment status will be available on the MUFG Intime India Private Limited (Link Intime) website after June 30, 2025. Follow these steps:

• Visit the Link Intime website.
• Select “HDB Financial Services Limited” from the dropdown menu.
• Enter your PAN, application number, or DP/Client ID.
• Click “Search” to view your allotment status.

Alternatively, check the status on the BSE or NSE websites by selecting “Equity” and “HDB Financial Services Limited.” Investors will also receive allotment updates via email.

Subscription Status (as of June 25, 2025, 1:30 PM):

• Overall: 0.21 times (2.71 crore shares applied vs. 13.04 crore offered)
• Retail: 0.20 times
• NII: 0.34 times
• QIB: Negligible (25,360 shares applied)
• Shareholder Quota: 0.58 times
• Employee Quota: 1.46 times

Company Contact Details

HDB Financial Services Limited

HDB House, Tukaram Sandam Marg, 
Subhash Road, Vile Parle (East),
Mumbai – 400057, Maharashtra, India
Phone: +91 22 4911 6350
Email: compliance@hdbfs.com

Registrar: 

MUFG Intime India Private Limited (Link Intime)
C 101, 247 Park, L.B.S. Marg, Vikhroli (West),
Mumbai - 400083, India
Phone: +91-22-4918 6270
Email: hdb.ipo@linkintime.co.in

Conclusion

HDB Financial Services IPO presents an opportunity to invest in a leading NBFC backed by HDFC Bank. This NBFC has a strong retail and small business lending presence. Its diversified portfolio, extensive network, and reasonable valuation make it attractive for long-term investors. 

However, risks such as profitability pressures, a high OFS component, and modest GMP warrant caution for short-term gains. You should monitor subscription trends and market conditions before applying.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.

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