HDB Financial Services Receives SEBI Approval for Rs 12,500 Crore IPO
HDB Financial Services, a prominent non-banking financial company (NBFC) and subsidiary of HDFC Bank, has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) worth Rs 12,500 crore. This IPO is one of the largest by an NBFC in India and marks a significant milestone for the HDFC group, being its first public offering in over six years.
The IPO consists of a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by HDFC Bank, which currently holds a 94.36% stake in HDB Financial Services. The proceeds from the fresh issue will be utilized to strengthen the company’s Tier-I capital base, supporting future capital requirements and enabling business expansion through increased lending capacity.
Company Overview and Expansion Plans
Established in 2007, HDB Financial Services operates an extensive network of over 1,680 branches across India, primarily focusing on underbanked and underserved customer segments. The company offers a diversified portfolio of secured and unsecured loans and has shown robust financial performance, with a loan book size of approximately Rs 1.07 trillion as of March 2025.
Leveraging digital onboarding and data-driven credit underwriting, HDB Financial Services has positioned itself strongly in the competitive NBFC landscape. The IPO also aligns with the Reserve Bank of India’s 2022 directive mandating large NBFCs to get listed on stock exchanges by FY 2025, reinforcing regulatory compliance and market discipline.
Significance of the IPO in the Market
With SEBI’s approval, HDB Financial Services’ IPO presents an attractive opportunity for investors to participate in the growth story of a well-established NBFC backed by the HDFC group. The company’s shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Alongside HDB Financial Services, SEBI has also approved IPOs for five other companies from diverse sectors, including Vikram Solar, A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals, and Shreeji Shipping Global Ltd., indicating a strong pipeline of public offerings in the Indian capital markets.
Conclusion
Overall, the HDB Financial Services IPO is a crucial step towards strengthening the company’s capital base and fueling its business growth. Supported by the strong parentage of HDFC Bank, the IPO is expected to garner significant investor interest and further accelerate the development of India’s NBFC sector.
HDB Financial Services IPO – Frequently Asked Questions (FAQ)
1. What is the size of HDB Financial Services’ IPO?
The IPO is valued at Rs 12,500 crore, consisting of a Rs 2,500 crore fresh issue and a Rs 10,000 crore offer for sale by HDFC Bank.
2. Who is the promoter of HDB Financial Services?
HDFC Bank is the parent company and promoter, holding a 94.36% stake in HDB Financial Services.
3. What is the purpose of the fresh issue in the IPO?
The fresh issue proceeds will be used to strengthen HDB Financial Services’ Tier-I capital base to support future capital needs and business growth, including additional lending.
4. When did HDB Financial Services file for the IPO?
The company filed its draft red herring prospectus (DRHP) with SEBI in October 2024.
5. Why is HDB Financial Services going public?
The IPO is in compliance with the Reserve Bank of India’s 2022 mandate that large NBFCs must list on stock exchanges by September 2025. It also helps raise capital for expansion.
6. Where will the shares be listed?
The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
7. How significant is this IPO in the Indian market?
This is the largest IPO by an NBFC in India and the fifth-largest overall in the domestic market, marking a major event for the financial sector.
8. Are there other companies that recently received SEBI approval for IPOs?
Yes, along with HDB Financial Services, companies like Vikram Solar, A-One Steels India, Shanti Gold International, Dorf-Ketal Chemicals, and Shreeji Shipping Global Ltd have also received SEBI approval for their IPOs.
9. What are the future plans of HDB Financial Services after the IPO?
The company plans to use the capital raised to expand its lending business and strengthen its financial position to support sustained growth.