“We felt this was the right time to raise capital. We didn’t want to come back to the market just a few months or years after going public,” said G Ramesh, MD & CEO of HDB Financial, in an exclusive interview to CNBC-TV18.
The IPO, which opens on June 25 and closes on June 27, is seen as a major milestone in the company’s journey—not an exit. “Our entire focus as an organisation has been on building value—for our customers and our stakeholders,” Ramesh said. The issue includes a fresh issue of ₹2,500 crore and an offer for sale worth ₹10,000 crore by parent HDFC Bank.
HDB Financial, which was incorporated 17 years ago, has been profitable for almost its entire existence, barring a marginal loss in its first year. The company now has a presence in over 1,170 cities and a customer base of 19 million.
Ramesh underlined that HDB operates as an independent entity, despite being a subsidiary of HDFC Bank. “We don’t get any leads from our parent or any other company. We have our own origination engine, risk management, and tech platform,” he said. There are also no staff deputations from the bank to the NBFC.
The company caters to what it calls “aspirational India”—a diverse, growing customer base with both business and personal credit needs. “When we think of our customer, we ask: what does this customer need through their life cycle, and how do we fulfil that need?” said Ramesh.
While the IPO comes amid regulatory uncertainty around the RBI’s draft norms on overlapping businesses between banks and their subsidiaries, Ramesh declined to speculate on what the final circular might say. However, he emphasised that HDB’s operations are distinct, and the company does not engage in any arbitrage or prohibited activities.
Watch accompanying video for entire conversation.
