HDB Financial Services IPO – Review
HDB Financial Services Limited, a leading Non-Banking Financial Company (NBFC) in India, is planning to raise INR 12,500 crore via IPO.
[Fresh Issue 2500 crore + OFS 10,000 crore]
Hdb financial services ipo price is INR 700 – 740 per share
HDB Financial Services: History
The Company was incorporated as HDB Financial Services Limited under the Companies Act, 1956 under a certificate of incorporation issued by the RoC, Gujarat, Dadra & Nagar Haveli in Ahmedabad on June 4, 2007.
The Reserve Bank of India (RBI) granted a certificate of registration on December 31, 2007, to the Company to carry on the business of a non-banking financial institution without accepting public deposits.
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HDB Financial Services: Business
According to the CRISIL Report, HDB Financial Services Ltd is one of the leading, diversified retail-focused NBFCs in India in terms of Total Gross Loan book size.
The Company began its journey in 2007 as a subsidiary of HDFC Bank Limited (the largest private sector bank in India, in terms of total assets).
HDB Financial offers a large portfolio of lending products that cater to a growing and diverse client base through a wide omni-channel distribution network.
The Company’s lending products are offered through 3 business verticals –
- Enterprise Lending,
- Asset Finance, and
- Consumer Finance
The Company also offers business process outsourcing (BPO) services such as back-office support services, collection, and sales support services to the Promoter company as well as fee-based products such as the distribution of insurance products primarily to the lending clients.
Loan Book
The Company’s total Gross Loans stood at 986.2 billion as of September 30, 2024, reflecting a CAGR of 20.93 percent between March 31, 2022 to September 30, 2024.
Assets Under Management
Assets Under Management (AUM) of the Company stood at 902.3 billion as of March 31, 2024, reflecting a CAGR of 21.18 percent between Fiscal Year 2022 and Fiscal Year 2024.
Network
With a strong branch network of 1,771 branches across 1,170 towns and partnerships with over 1,40,000 retailers, HDB Financials serves 19.2 million clients, growing at a 25.45 percent CAGR.
Strategies Ahead
- Diversify and expand addressable client segments by widening and enhancing product offerings.
- Expand pan-India omnichannel distribution network
- Invest in technology, data analytics, and artificial intelligence to further improve client experience, increase organisational productivity, and decrease costs
- Diversify borrowing profile to optimise borrowing costs
- Strengthen and improve risk management framework as well as underwriting and collections capabilities to minimize the risk of credit losses
- Attract, upskill, and retain talented employees by strengthening organizational culture
Company Promoter
HDFC Bank Limited
IPO Details
IPO date = 25 June to 27 June 2025
Minimum Amount = INR 14,800
Minimum Bid = 20 Shares
Face Value (FV) = INR 10
Listing On = NSE, BSE
Book Running Lead Managers
BNP Paribas,
JM Financial Limited,
Bofa Securities India Limited,
Goldman Sachs (India) Securities Private Limited,
HSBC Securities & Capital Markets Pvt Ltd,
IIFL Capital Services Limited,
Jefferies India Private Limited,
Morgan Stanley India Company Pvt Ltd,
Motilal Oswal Investment Advisors Limited,
Nomura Financial Advisory & Securities (India) Pvt Ltd,
Nuvama Wealth Management Limited,
UBS Securities India Private Limited
Financials
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CONCLUSION
FinBlab recommends ‘SUBSCRIBE‘ ratings on HDB Financial Service IPO (keeping a long-term view in mind)
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