The IPO comprises a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by parent HDFC Bank, which currently holds a 94.3% stake in the company.
CNBC-TV18 had earlier reported that SEBI was expected to clear the IPO by May 27.
The listing is a regulatory requirement, as HDB Financial Services falls under the “Upper Layer” category of Non-Banking Financial Companies (NBFCs) pursuant to the Reserve Bank of India’s (RBI) October 2022 circular.
As per RBI norms, all NBFCs classified in this category must be listed within three years of notification, by September this year.
Additionally, if the RBI’s 2024 draft circular on the overlap of similar businesses is implemented, HDFC Bank may be required to either reduce its stake in HDB Financial to 20%, merge the businesses, or segregate their offerings.
Utilisation of IPO proceeds
– Strengthening Tier-1 capital
– Meeting future capital requirements, including onward lending
– Complying with capital adequacy regulations
HDB Financial Services: Key strengths
– Strong backing from HDFC Bank
– Established presence in the granular retail segment
– Robust capital structure and diversified funding profile
HDB Financial Services: Key risks
– Moderate asset quality
– Exposure to unsecured and riskier segments
Despite the public listing, HDB Financial will continue to remain a subsidiary of HDFC Bank. The company operates through 1,680 branches and has a diversified asset under management (AUM) mix, with a strong focus on retail and SME lending. Its largest loan segments include vehicle finance and loans against property.
Shares of HDFC Bank Ltd. are trading with gains of 0.60% on Wednesday at ₹1,936.10. The stock has risen nearly 9% so far in 2025.
First Published: Jun 4, 2025 11:01 AM IST
