HDB Financial Services IPO: HDFC Bank’s highly anticipated move to list its non-banking finance arm, HDB Financial Services (HDBFS), is officially underway, with the Initial Public Offering (IPO) slated to open for subscription from June 25 to June 27, 2025. The anchor investor portion of the IPO will commence bidding a day earlier, on June 24.
This IPO marks a significant event in India’s financial landscape, particularly within the Non-Banking Financial Company (NBFC) sector. HDB Financial Services, a wholly-owned subsidiary of HDFC Bank, has been gearing up for this public issue in compliance with the Reserve Bank of India’s (RBI) directive. The RBI mandated that all “Upper Layer” NBFCs, like HDBFS, must be listed on stock exchanges by September 2025 to enhance transparency and governance.
“This is in furtherance of our intimation dated October 31, 2024, regarding filing of draft red herring prospectus dated October 30, 2024. Pursuant to the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, we wish to inform you that HDB Financial Services Limited (“Company”) has filed the red herring prospectus dated June 19, 2025 (“RHP”) with the Registrar of Companies, Gujarat, Dadra and Nagar Haveli at Ahmedabad (“RoC”) in connection with the initial public offering of equity shares of face value of 10 each (“Equity Shares”) comprising a fresh issue of Equity Shares aggregating up to 25,000.0 million and an offer for sale of Equity Shares aggregating up to 100,000.0 million by HDFC Bank Limited, Promoter of the Company (collectively, the “Offer”),” HDFC Bank said in a BSE regulatoru filing
HDB Financial Services IPO Details
This highly anticipated IPO in the NBFC sector will be a combination of:
A fresh issue of ₹2,500 crore.
An offer for sale (OFS) of ₹10,000 crore by HDFC Bank.
Currently, HDFC Bank holds a 94.3% stake in HDB Financial Services. The IPO will also include reservations for eligible HDBFS employees and HDFC Bank shareholders.
This combined issue size of ₹12,500 crore positions HDB Financial Services’ IPO as one of the largest in the financial services sector in recent times, and potentially the largest since Hyundai Motor India’s IPO last year. The official price band and lot size for the IPO are yet to be announced, but are expected to be revealed shortly.
The IPO will also include reservations for subscription by eligible employees of HDB Financial Services and eligible HDFC Bank shareholders, offering them an opportunity to participate in this significant public listing.
About HDB Financial Services
The company operates through an extensive pan-India network of 1,680 branches (as of the earlier data, current data indicates 1,772 branches as of September 30, 2024), with a significant portion of its branches located in semi-urban and rural areas. The company’s strong financial track record, coupled with the backing of its parent HDFC Bank, contributes to its perceived stability and growth potential.
Investors and market participants will be keenly watching the IPO’s pricing, valuations, and subscription levels, as it presents a unique opportunity to invest directly in a high-growth subsidiary of the esteemed HDFC Group, which has remained unlisted until now.
On Thursday, shares of HDFC Bank, India’s largest private lender, closed at ₹1,933.1
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