HDB Financial IPO: Big Launch, Big Questions
The much-awaited HDB Financial Services IPO opens for subscription on 25th June with a price band of ₹700–₹740 per share. The NBFC arm of HDFC Bank, HDB plans to raise ₹12,500 crore, making it one of 2025's biggest IPOs.
What does HDB do?
HDB is India’s 4th largest retail-focused NBFC, with an AUM of ₹1.07 lakh crore. Its three key verticals:
MSME loans (~39%)
Asset finance (like vehicles, ~38%)
Consumer finance (~23%)
Its core strength lies in rural India — 70% of its 1,771 branches are in Tier-4 or smaller towns. The average loan size is ~₹1.65 lakh, targeting underserved regions.
Financial Snapshot (FY25):
Net Interest Income: ₹7,446 crore (+18% YoY)
PAT: ₹2,176 crore (-12% YoY)
Gross NPA: 2.3% (vs 1.9% YoY)
Net NPA: 1% (vs 0.6% YoY)
The IPO includes a ₹2,500 crore fresh issue, with the rest being Offer for Sale. The funds will help meet regulatory capital needs.
Big Picture:
HDB isn't a niche player like Shriram Finance or Muthoot Finance, nor is it a giant like Bajaj Finance. But its 23% CAGR in loan book growth (FY23–25) shows strong momentum, especially in rural lending.
It’s also priced at a discount to peers, and GMP indicates ~11% listing gain, but sustaining that will depend on performance and market trust.
Peer Tag List:
🔹 Bajaj Finance
