HDB Financial Services
MainboardBSE₹12,500 Cr issue
+12.84%
Listing gain over issue price
Issue size
₹12,500 Cr
1 lot at cut-off
₹14,800
Lot size
20shares
Open
25 Jun 2025
Close
27 Jun 2025
Allotment
30 Jun 2025
Listing
02 Jul 2025
Listing performance
Issue price
₹740
Listed at
₹835
Listing-day close
₹840.95
Latest price
₹504.85
Close on 23 Oct 2026
Listing gain
+12.84%
Return since issue
-31.78%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jun 2025 – 27 Jun 2025
- Listing date
- 02 Jul 2025
- Face value
- ₹10 per share
- Issue price
- ₹740 per share
- Lot size
- 20 shares
- Listing at
- BSE
- Total issue size
- ₹12,500 Cr
- Market cap at offer price
- ₹61,253 Cr
- Promoter holding
- 94.32% → 74.19% pre-issue → post-issue
- ISIN
- INE756I01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- BNP Paribas
- Registered office
- Radhika, 2nd Floor, Law Garden Road, Navrangpura, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 4,55,27,026 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 20 shares per lot, in multiples, at ₹740
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 20 | ₹14,800 |
| Retail (max) | 13 | 260 | ₹1,92,400 |
| S-HNI (min) | 14 | 280 | ₹2,07,200 |
| S-HNI (max) | 67 | 1,340 | ₹9,91,600 |
| B-HNI (min) | 68 | 1,360 | ₹10,06,400 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
4,55,27,026
Anchor portion
₹3,369 Cr
at ₹740 per share
Valuation and performance
Valuation at offer price
₹740 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 27.41 | 26.29 |
| P/E (×) | 27.00 | 28.15 |
| Price to book (×) | 3.72 | — |
| Market cap | — | ₹61,253 Cr |
Key performance indicators
Latest reported period
- Debt / equity
- 5.85
- NAV per share
- ₹198.80
- Price to book
- 3.72
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About HDB Financial Services
HDB Financial Services Limited was incorporated on June 4, 2007 and commenced operations on July 31, 2007. The company is an Upper Layer NBFC (NBFC-UL) categorized by the RBI, registered with the IRDAI as a corporate agent, and operates as a subsidiary of HDFC Bank Limited with a 94.09% stake. The company offers three primary business verticals: Enterprise Lending (39.30% of loan book), Asset Finance (38.03%), and Consumer Finance (22.66%), along with business process outsourcing services such as back-office support, collection, and sales support services to its promoter, and fee-based products including insurance distribution. The company makes revenue primarily through interest income on its diversified loan portfolio and finance costs, with Total Gross Loans of ₹1,068.8 billion as at March 31, 2025.
Company Analysis
from RHPHDB Financial Services Limited is India's seventh-largest diversified retail-focused non-banking financial company (NBFC) offering enterprise lending, asset finance, and consumer finance products, with a Total Gross Loan book of ₹902.2 billion as at March 31, 2024.
HDB Financial Services Limited was incorporated on June 4, 2007 and commenced operations on July 31, 2007. The company is an Upper Layer NBFC (NBFC-UL) categorized by the RBI, registered with the IRDAI as a corporate agent, and operates as a subsidiary of HDFC Bank Limited with a 94.09% stake. The company offers three primary business verticals: Enterprise Lending (39.30% of loan book), Asset Finance (38.03%), and Consumer Finance (22.66%), along with business process outsourcing services such as back-office support, collection, and sales support services to its promoter, and fee-based products including insurance distribution. The company makes revenue primarily through interest income on its diversified loan portfolio and finance costs, with Total Gross Loans of ₹1,068.8 billion as at March 31, 2025.
non-banking financial serviceslendingfinancial servicesretail finance
Objects of the Issue
- Augmentation of company's Tier-I capital base to meet future capital requirements including onward lending under any of the company's business verticals (Enterprise Lending, Asset Finance and Consumer Finance) [●] p.21
- Augmenting capital base to meet future business requirements including towards onward lending ₹25,000.0 million (Fresh Issue) p.65
- Augmentation of Company's Tier–I Capital base to meet future capital requirements including onward lending under Enterprise Lending, Asset Finance and Consumer Finance verticals ₹25,000 million (Fresh Issue gross proceeds) p.148
- Meeting Offer Expenses [●] million p.148
- General corporate purposes Up to 100,000.00 p.498
Issue Structure
- Total Issue
- Up to ₹125,000.0 million
- Fresh Issue
- Up to ₹25,000.0 million
- Offer for Sale
- Up to ₹100,000.0 million
- Price Band
- [●] per equity share (Floor Price) to [●] per equity share (Cap Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10 per equity share
Business Model
HDB Financial Services earns revenue through interest income on its diversified lending portfolio across three business verticals (Enterprise Lending, Asset Finance, and Consumer Finance), through provision of business process outsourcing services to its promoter HDFC Bank, and through fee-based insurance product distribution. The company is funded through wholesale borrowing sources including non-convertible debentures, term loans, external commercial borrowings, and commercial paper.
Business Segments
Provides loans against property, business loans, and salaried personal loans to enterprises
Provides commercial vehicle loans, construction equipment loans, and tractor loans
Provides auto loans, relationship personal loans, and consumer durable/digital product/lifestyle product loans
Provides financing for purchase of vehicles, tractors, construction equipment and other assets
Provides personal loans and consumer financing products
Distribution of life and non-life insurance products and provision of warranty and protection services
Lending to enterprises across various sectors
Financing of assets including vehicles and equipment
Lending directly to consumers for personal credit needs
Back-office support services, collection and sales support services
Distribution of insurance products to lending customers
Secured and unsecured loans primarily to micro, small and medium enterprises (MSMEs) to meet their varied and evolving business needs, including business loans, loan against property, enterprise business loans, salaried personal loans and gold loans
Secured loans for purchase of new and used commercial vehicles, construction equipment and tractors, all of which are income generating assets for customers
Secured and unsecured loans for purchase of consumer durables, digital and lifestyle products, two-wheelers, automobiles and other unsecured personal loans
Financing for commercial vehicles; introduced in 2010
Loans against gold collateral; introduced in 2010
Financing for automobiles; introduced in 2011
Equipment financing for commercial use; introduced in 2011
Loans for consumer durable goods; introduced in 2016
Agricultural equipment financing; introduced in 2017
Financing for digital products; introduced in 2017
Financing for two-wheelers; introduced in 2018
Loans to microfinance borrowers; introduced in 2020
Financing for lifestyle and personal use; introduced in 2020
Provides BPO services including financial services processing; part of main objects
Lending to enterprises across various sectors
Financing of assets for customers
Lending to consumers for personal and other purposes
Business process outsourcing services including sales support, back office operations, processing support, collection centres and collection services
Providing finance to retail customers for a variety of purposes like purchase of commercial equipment and commercial vehicles, personal purposes, enterprise loans, etc. Revenue includes interest income and processing fees net of loan origination costs, collection-related charges like cheque bouncing charges, late payment charges and foreclosure charges, and insurance commission.
Sales support services, back office, operations, processing support, running collection call centres and collecting overdue amounts from borrowers.
Provides financing for purchase of four-wheeler vehicles
Provides financing for purchase of two-wheeler vehicles
Provides unsecured personal loans to individuals
Provides loans secured by residential or commercial property
SWOT Analysis
Strengths
- • Seventh largest diversified NBFC by loan book size(p.20)
- • Upper Layer NBFC status with RBI certification(p.20)
- • Strong promoter backing from HDFC Bank(p.20)
- • Diversified loan portfolio across three business verticals(p.20)
- • Growth in Total Gross Loans(p.20)
- • Diversified loan portfolio across enterprise, asset finance, and consumer segments(p.162)
- • Significant scale with 19.2 million customers and 1,771 branches(p.162)
- • Strong secured loan portfolio at 73% of total gross loans(p.162)
- • Healthy loan growth at 18.47% year-on-year(p.162)
- • Better asset quality with GNPA at 2.26% compared to peers(p.163)
- • Strong provision coverage ratio of 55.95%(p.163)
- • Robust equity base of ₹158,197.5 million(p.163)
- • Second largest and third fastest growing customer franchise among NBFC peers(p.252)
- • Highly granular retail loan book with low customer concentration(p.252)
- • Diversified product portfolio across three business verticals(p.253)
- • Pan-India distribution network with strong presence beyond metro markets(p.255)
- • Highest credit rating (AAA stable) enabling low-cost borrowing(p.259)
- • Robust financial performance with strong asset quality(p.260)
- • Advanced technology platform enabling digital origination and collections(p.259)
- • Backing of HDFC Bank, India's largest private sector bank(p.261)
- • Established trademark and brand identity with HDFC Bank logo(p.276)
- • Significant employee base with diverse skill sets and continuous upskilling(p.276)
- • Eight registered trademarks protecting core intellectual property(p.276)
- • Comprehensive insurance coverage protecting operational risks(p.276)
- • Extensive branch network across India for market penetration(p.277)
- • Strong commitment to corporate social responsibility and community development(p.278)
- • Strong capital adequacy ratio maintained above regulatory minimum(p.328)
- • Diversified loan portfolio across three verticals(p.333)
- • Large and growing customer base(p.333)
- • Significant branch and location network expansion(p.333)
- • Strong profitability with improving net interest margin(p.345)
Weaknesses
- • High dependence on wholesale borrowing sources(p.43)
- • Increasing non-performing assets(p.30)
- • Declining profit after tax(p.45)
- • Negative operating cash flows(p.40)
- • High dependence on HDFC Bank for BPO services revenue(p.41)
- • Concentrated borrower base with BPO services(p.41)
- • High employee attrition reduces organisational performance and productivity(p.59)
- • New-to-credit borrowers carry higher default risk(p.52)
- • Reliance on accuracy and completeness of customer information is prone to misrepresentation(p.52)
- • Material fraud incident at Ghaziabad branch involving 228 loans(p.50)
- • Contingent liabilities of ₹1,242.6 million represent 0.83% of net worth(p.47)
- • High debt-to-equity ratio of 5.85x limits access to cost-effective funding(p.45)
- • Dependence on third-party partners for 18.33% of disbursements(p.53)
- • Elevated debt-to-equity ratio of 5.85x indicating high financial leverage(p.163)
- • Declining profitability with PAT falling 11.58% year-on-year(p.162)
- • Lower return on equity at 14.72% versus peer benchmarks(p.163)
- • Lower return on assets at 2.16% indicating operational efficiency challenges(p.163)
- • Elevated cost-to-income ratio of 42.84% suggesting operational inefficiency(p.162)
- • Deteriorating credit cost ratio at 2.14% from 1.33% in prior year(p.162)
- • High leverage ratio limiting financial flexibility(p.260)
- • High employee expense concentration in operating costs(p.241)
- • Declining PAT growth despite loan book expansion(p.260)
- • Dependence on promoter for significant funding(p.261)
- • High employee attrition rate limiting organizational stability(p.276)
- • Dependency on trademark license agreement with promoter that can be terminated(p.300)
- • Reliance on leased properties for office operations with no owned infrastructure(p.277)
- • Insurance coverage gaps where estimated losses have exceeded coverage limits(p.277)
- • Increasing gross NPA ratio indicating rising asset quality concerns(p.328)
- • High debt-to-equity ratio indicating significant leverage(p.328)
- • Declining return on equity year-over-year(p.327)
- • Increasing provision coverage ratio suggests deteriorating loan quality(p.328)
- • Substantial impairment expense growth indicating credit stress(p.335)
- • Extensive litigation exposure from regulatory compliance violations and customer disputes across multiple domains(p.478)
- • Significant customer disputes related to vehicle repossession procedures and alleged harassment by recovery agents(p.464)
- • Multiple instances of alleged employee fraud and misconduct in loan disbursement and customer account management(p.487)
- • Regulatory penalties imposed for breaches in interest rate compliance and recovery agent guidelines(p.478)
- • Compliance lapses in Anti-Money Laundering and Know Your Customer norms through authorized dealer partners(p.465)
- • Enforcement Directorate investigations regarding Foreign Direct Investment transactions and money laundering concerns(p.466)
- • Alleged unauthorized transactions and system vulnerabilities affecting customer accounts(p.475)
Opportunities
- • NBFC credit growth projections(p.20)
- • Expansion of branch network(p.45)
- • Growth strategy for new regions and products(p.45)
- • Strong historical AUM growth(p.45)
- • Expansion into new regions and introduction of new products(p.45)
- • Growing demand for loans in India with domestic economic growth(p.45)
- • Deployment of artificial intelligence and machine learning in operations(p.48)
- • Enhanced digital customer service channels for improved engagement(p.48)
- • Large MSME credit gap of ₹34 trillion presenting significant growth opportunity(p.206)
- • Secular growth in retail credit projected at 14-16% CAGR through FY28(p.197)
- • Commercial vehicle financing growing at 11-13% CAGR through FY28(p.220)
- • Expansion opportunity in rural and semi-urban areas with only 9% credit share despite 47% GDP contribution(p.189)
- • MSME secured loan portfolio projected to grow 17-19% CAGR through FY28(p.209)
- • India's favorable macro backdrop with GDP growth projected at 6.5% in FY26(p.182)
- • Rising middle-class population with 181 million middle-income households projected by FY30(p.188)
- • Significant penetration potential in underbanked rural markets(p.252)
- • Expansion of product portfolio to serve diverse customer needs(p.261)
- • Continued growth in construction equipment financing market(p.223)
- • Strong growth trajectory in personal loans segment(p.230)
- • Rapid expansion of two-wheeler financing market(p.235)
- • NBFCs gaining market share in microfinance segment(p.238)
- • Expansion opportunities through technology investments and AI adoption(p.262)
- • Expansion into digital lending with regulatory framework now in place(p.288)
- • Co-lending model enabling expanded credit reach to underserved segments(p.290)
- • Priority sector lending classification enabling credit deployment to crucial economic sectors(p.292)
- • Securitisation of standard assets enabling improved liquidity and risk distribution(p.289)
- • Microfinance lending expansion with regulatory support for underserved populations(p.288)
- • Rapid portfolio growth across all lending verticals(p.333)
- • Growing employee base supporting operational expansion(p.333)
- • Diversified funding sources with increasing external commercial borrowings(p.328)
- • Strong interest income growth driven by portfolio expansion(p.345)
Threats
- • Regulatory risk from RBI draft circular on overlapping business(p.33)
- • Macroeconomic downturn risk in India(p.44)
- • Interest rate volatility risk(p.41)
- • Customer credit default risk(p.30)
- • Asset-liability mismatch liquidity risk(p.37)
- • Collateral value depreciation risk(p.32)
- • Highly competitive NBFC lending market with 2.22% market share(p.45)
- • Evolving RBI regulatory framework and Upper Layer NBFC compliance requirements(p.46)
- • Cybersecurity threats and external vendor data breach incidents(p.48)
- • Seasonal trends affecting loan demand and portfolio mix(p.49)
- • Customer loan refinancing and balance transfers reduce AUM growth(p.58)
- • Insolvency and Bankruptcy Code limits recovery of loans from defaulting customers(p.57)
- • Geopolitical conflicts and natural disasters could disrupt business operations(p.66)
- • RBI inspection observations and regulatory non-compliance penalties(p.47)
- • Regulatory risk from RBI interventions to slow unsecured retail loan growth(p.199)
- • Credit quality stress in unsecured lending segments particularly microfinance and personal loans(p.199)
- • Competition from larger peers with superior market positioning and lower cost of funds(p.198)
- • Geopolitical risks and tariff uncertainties impacting economic growth and credit demand(p.182)
- • Asset quality deterioration risk from MSME borrower susceptibility to policy changes(p.216)
- • Increasing competition in NBFC sector with rising focus on MSME lending(p.207)
- • Economic slowdown impacting commercial vehicle financing demand(p.223)
- • Regulatory convergence increasing competition and compliance burden(p.223)
- • Intense competition from banks, fintechs and new players(p.275)
- • Credit risk from unsecured personal loan growth(p.231)
- • Asset quality vulnerabilities from borrower overleveraging(p.231)
- • Cyclicality in construction equipment financing affecting asset quality(p.226)
- • Two-wheeler finance concentration in low-income, high-risk borrowers(p.237)
- • Seasonal income dependency in tractor financing(p.228)
- • Loss of HDFC Bank brand and trademark upon relationship termination(p.37)
- • Regulatory restrictions on branch expansion beyond 1,000 branches(p.281)
- • Stringent liquidity coverage ratio requirements limiting operational flexibility(p.282)
- • Mandatory listing requirement within three years for NBFC-UL classification(p.281)
- • Digital Personal Data Protection Act imposing data handling compliance obligations(p.292)
- • Strict prudential norms on capital adequacy and asset classification limiting profitability(p.281)
- • Rising interest rate environment increasing finance costs(p.328)
- • Deteriorating asset quality with rising stage 3 loans(p.328)
- • Compressed net interest margin reflecting competitive pressures(p.335)
- • Regulatory capital requirements constraining business growth(p.349)
- • Ongoing criminal litigation and regulatory scrutiny relating to customer complaints and alleged misconduct across multiple jurisdictions(p.481)
- • Multiple Enforcement Directorate investigations and provisional attachment orders concerning customer assets financed by the bank(p.474)
- • Pending show cause notices and potential penalties from RBI regarding regulatory non-compliance on multiple fronts(p.481)
- • Reputational risk from allegations of forgery, unauthorized document processing, and collusion with borrowers(p.464)
- • Risk from high volume of pending civil and criminal cases related to vehicle repossession and alleged procedural violations(p.465)
- • Regulatory restrictions previously imposed on digital business activities and credit card customer acquisition(p.478)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| HDFC Bank Limited | Promoter and Promoter Selling Shareholder | 750,596,670 equity shares; 94.01% on a fully diluted basis | [●] |
| HDFC Bank Limited | Promoter Selling Shareholder | — | — |
| HDFC Bank Limited | Promoter/Promoter Selling Shareholder | 94.04% | [●] |
| HDFC Bank Limited | Promoter | 94.09% | — |
| HDFC Bank Limited | Promoter/Holding Company | 94.04% | — |
| HDFC Bank Limited | Holding Company and Promoter | 94.32% | — |
| HDFC Bank Limited | Holding Company/Promoter | — | — |
| HDFC Bank Limited | Promoter/Promoter Selling Shareholder | — | — |
| HDFC Bank Limited | Promoter Selling Shareholder | — | — |
Leadership
Ramesh Ganesan · Managing Director and Chief Executive Officer
Jaykumar Pravinchandra Shah · Chief Financial Officer
Dipti Jayesh Khandelwal · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
HDB Financial Services IPO FAQs
What is the lot size of HDB Financial Services IPO?
The minimum lot size of HDB Financial Services IPO is 20 shares. One lot costs ₹14,800 at the cut-off price.
When does HDB Financial Services IPO open and close?
HDB Financial Services IPO opened for subscription on 25 Jun 2025 and closed on 27 Jun 2025.
What is the listing date of HDB Financial Services IPO?
HDB Financial Services IPO listed on 02 Jul 2025.