The HDB Financial Services IPO has burst onto the scene as a potential milestone for NBFC India, aiming to raise a staggering Rs 12,500 crore IPO—split between Rs 2,500 crore fresh issue and Rs 10,000 crore OFS by HDFC Bank. It’s not just another financial services IPO; it’s the first mega-IPO this year to shake up the stock market India landscape—especially for investors eyeing a fresh investment opportunity in the non-banking financial company space.
Anchor Investors Say ‘Yes’—Big Time
Boast alert: HDB raised a cool Rs 3,369 crore from anchor investors including BlackRock, LIC, Norway’s sovereign fund, and top domestic MFs—crop of marquee names at Rs 740/share (upper band). That signals strong mojo, confidence, and credibility. The IPO pricing is backed by fundamentals, not grey-market hype—despite a ~70% grey-market premium from earlier valuation.
What the IPO Means for NBFC Growth India & Retail Investors
This is the largest-ever IPO by an NBFC India, putting NBFC growth firmly in investors’ field of vision .
HDB is a diverse lending platform: loans to MSMEs, vehicle finance, consumer credit, and enterprise lending—spread over ~1,770 branches and ~1.06 lakh crore AUM.
Strong FY25 numbers: Rs 2,176 crore net profit (+60% YoY), GNPAs at a healthy 2.49%, and solid ROE (~18%).
At Rs 740, HDB trades ~3.7× FY25 P/B—higher than some peers but lower than the likes of Bajaj Finance.
This IPO isn’t just about big numbers—it’s about spotlighting retail investors to anchor investors, legit valuations, and a path for long-term participation in the NBFC story.
Access Structure & Who Can Participate
IPO open from June 25–27, priced Rs 700–740 per share, lot size: 20 shares (~Rs 14,800).
Allocation: QIBs 44.9%, NIIs 13.5%, Retail 31.4%, plus employee and HDFC shareholder quotas (10%).
Early data shows ~0.28× subscription at mid-Day 1—with especially strong interest from retail investors.
SBI Securities, Anand Rathi, Centrum, Geojit, Mehta Equities, and others have tagged it “Subscribe for long term”—though no buy/sell calls here!.
Mega-IPO Pros & Cons: Risks in the NBFC Landscape
Strengths:
Backed by HDFC Bank’s powerful brand and governance.
Diversified loan book across segments and geographies.
Improving asset quality and earnings consistency.
Well-priced versus both peers and unlisted grey-market valuation.
Risks:
Grey-market premium cooling (~Rs 50-80 ? ~7–10%) suggests tempered enthusiasm.
Valuation falls slightly behind top-tier NBFCs; execute well and grow earnings.
As a public offering, it's subject to market volatility, economy, and NBFC regulation.
Why This IPO Is a Game-Changer for NBFC India
Opens the floodgates: a Rs 12,500 crore offer ups NBFC’s presence in primary markets.
Signals market is again eyeing financial services IPOs—perhaps the spark needed after a slow start to 2025.
Shows NBFCs can raise capital at scale—fueling future NBFC growth India programs.
Gives retail investors a versatile entry into the sector—mass participation is now possible.
Indira Securities: Your Tool to Track and Participate
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Final Thought: IPO 2025’s Showstopper with Substance
The HDB Financial Services IPO is not just big—it’s meaningful. It validates the NBFC model, delivers retail participation, and refuels the IPO 2025 engine. If you're watching NBFC growth, stock market India, or investment opportunity across financial services, this is a landmark moment.
Disclaimer: This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.