The upcoming HDB IPO is attracting attention for its scale and structure. Set to open on June 25, 2025, and close on June 27, 2025, this book-built issue aims to raise ₹12,500 crore. The offering consists of a fresh issue of ₹2,500 crore and an offer for sale (OFS) worth ₹10,000 crore. HDB IPO HDB IPO With a price band fixed between ₹700 and ₹740, and a minimum lot size of 20 shares, retail investors will need to invest approximately ₹14,800 to participate. For those interested in applying, HDFC Sky’s One-Click IPO feature enables a straightforward, step-by-step application, allowing users to track bids, allotments, and refunds on a unified dashboard without paperwork. Corporate and Financial Background HDB Financial Services Limited, a subsidiary of HDFC Bank, was incorporated in 2007. It operates as a non-banking financial company (NBFC) focused on retail lending. The company also provides business process outsourcing (BPO) services and distributes fee-based financial products, mainly insurance, to its lending customers. Its operations are classified under three verticals: Enterprise Lending: Offers secured and unsecured loans to MSMEs and salaried individuals.Asset Finance: Funds for commercial vehicles, construction equipment, and tractors.Consumer Finance: Personal loans for household and individual needs. Enterprise Lending: Offers secured and unsecured loans to MSMEs and salaried individuals. Enterprise Lending Asset Finance: Funds for commercial vehicles, construction equipment, and tractors. Asset Finance Consumer Finance: Personal loans for household and individual needs. Consumer Finance As of March 31, 2025, the company operated 1,771 branches across 1,170 towns and cities, with over 80% located outside the top 20 cities by population. Employee strength stood at 60,432, up from 56,560 in 2024. IPO Detail and Structure The IPO detail reveals a total of 16,89,18,919 shares being offered. This includes: IPO detail 16,89,18,919 shares Fresh Issue: 3,37,83,784 shares (₹2,500 crore)Offer for Sale: 13,51,35,135 shares (₹10,000 crore)Issue type: Bookbuilding Face value: ₹10 per share Price band: ₹700–₹740 per share Lot size: 20 shares Minimum investment (retail): ₹14,800 Listing: BSE and NSE (tentative listing date: July 2, 2025) Fresh Issue: 3,37,83,784 shares (₹2,500 crore) Fresh Issue Offer for Sale: 13,51,35,135 shares (₹10,000 crore) Offer for Sale Issue type: Bookbuilding Issue type Face value: ₹10 per share Face value Price band: ₹700–₹740 per share Price band Lot size: 20 shares Lot size Minimum investment (retail): ₹14,800 Minimum investment (retail) Listing: BSE and NSE (tentative listing date: July 2, 2025) Listing Key Supporting Documentation Investors should refer to official docs such as the Red Herring Prospectus (RHP) to understand company operations, financials, and risk factors. A review of the company indicates long-term stability, although FY25 saw a dip in profits despite increased revenue. Book Running Lead Managers include JM Financial, BofA Securities, Morgan Stanley, BNP Paribas, Motilal Oswal, and others. The registrar for the IPO is MUFG Intime India Pvt Ltd. Subscription Allocation The IPO offers shares across various investor categories: Qualified Institutional Buyers (QIBs): 7,58,78,378 shares (44.92%)Non-Institutional Investors (NIIs): 2,27,63,514 shares (13.48%)sNII (small): 75,87,838 shares (4.49%)bNII (big): 1,51,75,676 shares (8.98%)Retail Investors (RIIs): 5,31,14,865 shares (31.44%)Employee Quota: 2,70,270 shares (0.16%)Shareholders’ Category: 1,68,91,892 shares (10%) Qualified Institutional Buyers (QIBs): 7,58,78,378 shares (44.92%) Qualified Institutional Buyers (QIBs) Non-Institutional Investors (NIIs): 2,27,63,514 shares (13.48%) Non-Institutional Investors (NIIs) sNII (small): 75,87,838 shares (4.49%) sNII bNII (big): 1,51,75,676 shares (8.98%) bNII Retail Investors (RIIs): 5,31,14,865 shares (31.44%) Retail Investors (RIIs) Employee Quota: 2,70,270 shares (0.16%) Employee Quota Shareholders’ Category: 1,68,91,892 shares (10%) Shareholders’ Category This ensures wide participation while maintaining balance across institutional and retail investors. For retail investors looking beyond large-scale issues like the HDB IPO, several Upcoming SME IPO listings are also generating interest due to their early-stage growth potential and lower investment thresholds.” Upcoming SME IPO Upcoming SME IPO Timeline and Allotment According to the schedule, the IPO follows this timeline: Opening Date: June 25, 2025Closing Date: June 27, 2025Allotment Finalisation: June 30, 2025Refund Initiation: July 1, 2025Credit to Demat Accounts: July 1, 2025Tentative Listing: July 2, 2025UPI Mandate Deadline: 5 PM on June 27, 2025 Opening Date: June 25, 2025 Opening Date Closing Date: June 27, 2025 Closing Date Allotment Finalisation: June 30, 2025 Allotment Finalisation Refund Initiation: July 1, 2025 Refund Initiation Credit to Demat Accounts: July 1, 2025 Credit to Demat Accounts Tentative Listing: July 2, 2025 Tentative Listing UPI Mandate Deadline: 5 PM on June 27, 2025 UPI Mandate Deadline Post-issue, investors can check the basis of allotment on the registrar’s website to know their allocation status. basis of allotment Company Performance and Metrics As per the RHP, HDB Financial Services saw a 15% growth in revenue but a 12% decline in profit for FY25 compared to FY24. Financial Overview (₹ in Crores): Financial Overview (₹ in Crores): Key ratios and indicators: Key ratios and indicators ROE: 14.72%Debt/Equity Ratio: 5.85Price to Book Value: 3.72 ROE: 14.72% ROE Debt/Equity Ratio: 5.85 Debt/Equity Ratio Price to Book Value: 3.72 Price to Book Value The company’s market cap is projected at ₹61,253.30 crore, reflecting strong market expectations. market cap Shareholding Pattern and Lot Size The shareholding will shift significantly post-listing: Pre-Issue: 94.32% (held by HDFC Bank)Post-Issue: 74.19% Pre-Issue: 94.32% (held by HDFC Bank) Pre-Issue Post-Issue: 74.19% Post-Issue Lot Size Lot Size Retail Minimum: 1 lot (20 shares) = ₹14,800Retail Maximum: 13 lots (260 shares) = ₹1,92,400sNII Minimum: 14 lots (280 shares) = ₹2,07,200bNII Minimum: 68 lots (1,360 shares) = ₹10,06,400 Retail Minimum: 1 lot (20 shares) = ₹14,800 Retail Minimum Retail Maximum: 13 lots (260 shares) = ₹1,92,400 Retail Maximum sNII Minimum: 14 lots (280 shares) = ₹2,07,200 sNII Minimum bNII Minimum: 68 lots (1,360 shares) = ₹10,06,400 bNII Minimum Application Process Through HDFC Sky To simplify the process, HDFC Sky offers a One-Click IPO feature that helps users place bids with ease across all IPO categories. This feature is also useful when exploring other investment options like SME IPO, which require similar convenience and clarity during application. SME IPO SME IPO How to Apply for the HDB Financial IPO Using HDFC Sky’s One-Click Feature HDFC Sky’s One-Click IPO simplifies the application journey. Here’s how to apply: HDFC Sky’s One-Click IPO Log in: Enter credentials on HDFC Sky's web or app platform.Navigate: Go to “Indian Stocks” > “IPO” tab.Select IPO: Find HDB Financial Services IPO and click “Apply Now.”Enter Details: Choose the lot size and bid amount.Payment: Select UPI and proceed.UPI Mandate: Authorise the transaction through your UPI app.Submit: Confirm and finalise your bid. Log in: Enter credentials on HDFC Sky's web or app platform. Log in Navigate: Go to “Indian Stocks” > “IPO” tab. Navigate Select IPO: Find HDB Financial Services IPO and click “Apply Now.” Select IPO Enter Details: Choose the lot size and bid amount. Enter Details Payment: Select UPI and proceed. Payment UPI Mandate: Authorise the transaction through your UPI app. UPI Mandate Submit: Confirm and finalise your bid. Submit Benefits of One-Click IPO: Benefits of One-Click IPO Paperless and fastReal-time alerts for allotment/refundCentralised IPO dashboard to track applicationsAvailable via app or web, anytime Paperless and fast Real-time alerts for allotment/refund Centralised IPO dashboard to track applications Available via app or web, anytime With all essential details thoroughly outlined, the HDB Finance IPO is poised to become one of 2025’s most anticipated public offerings. Thanks to the convenience of modern tools trading apps investors can now apply, track allotments, and manage their IPO investments seamlessly—anytime, anywhere—making participation more accessible and efficient than ever before. HDB Finance IPO HDB Finance IPO This story was distributed as a release by Kashvi Pandey under HackerNoon’s Business Blogging Program. Learn more about the program here. This story was distributed as a release by Kashvi Pandey under HackerNoon’s Business Blogging Program. Learn more about the program here. This story was distributed as a release by Kashvi Pandey under HackerNoon’s Business Blogging Program. Learn more about the program here .
