Listed

HDB Financial Services Limited IPO

HDB Financial Services Limited is a leading non-banking financial company (NBFC) in India, offering a broad range of secured and unsecured loans to individuals, small businesses, and enterprises. Incorporated in 2007, the company is a subsidiary of HDFC Bank, which holds a majority stake in the business. With a wide network of over 1,600 branches across India, HDB caters to both urban and rural customers.

DRHP Check Allotment Status

Min Investment

₹14,800

Lot Size

20 Shares

Price Range

₹740.0

Issue Size (₹ Cr.)

₹12,500.0

IPO Type

BSE NSE, Mainboard

Key Metrics

Face Value

₹ 10

GMP

₹ 75.0

Subscription

17.65x

EPS

₹ 26.29

P/E Ratio

28.15 x

RoNW

ROE

14.72%

Debt to Equity (₹ Cr.)

5.81

Timeline

IPO Opened25/06/2025Wednesday

IPO Closed27/06/2025Friday

Allotted30/06/2025Monday

Refunded01/07/2025Tuesday

Listed02/07/2025Wednesday

Strengths

Strong Parent Backing As a subsidiary of HDFC Bank, HDB enjoys access to deep financial resources, superior brand trust, and operational synergies—supporting its expansion and credibility.
Diversified Lending Business The company spans three major verticals—enterprise financing, asset loans, and consumer credit—helping it balance risk and capture opportunities across different customer segments.
Extensive Branch Network & Customer Base With over 1,600 branches across 31 states and more than 17 million customers, HDB has built strong reach and brand penetration, especially in underbanked regions.
Robust Financial Profile The firm has demonstrated consistent revenue and profit growth, strong capital adequacy (~19% CAR), and a well-managed credit book—reflecting resilience and financial discipline.
Digital-First Lending Infrastructure HDB leverages fintech-driven solutions for credit assessment, onboarding, and loan servicing, making operations efficient and customer-friendly while reducing turnaround times.

Weaknesses

High Exposure to Unsecured Lending A significant share of HDB’s portfolio includes unsecured loans and SME lending, which are inherently riskier and more prone to default in adverse economic cycles.
Asset Quality Pressures Non-performing assets (NPAs), though controlled, tend to rise during downturns, especially in the commercial vehicle and small business loan segments.
Regulatory Dependence As an NBFC, HDB is tightly regulated by the RBI. Any changes in lending norms, capital adequacy rules, or provisioning can directly impact business operations and profitability.
Limited Brand Independence Despite its scale, HDB’s identity is heavily tied to HDFC Bank, which may limit strategic independence or make the business vulnerable to reputational spillovers.
IPO Delay History The IPO has seen multiple delays over the years, raising investor concerns about timing, valuation, and market preparedness.