HDB Financial Services IPO: Check Open Date, Price, Lot Size & Details

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

To be announced

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About HDB Financial Services IPO

HDB Financial Services, the non-banking finance arm of HDFC Bank, is preparing for a significant initial public offering (IPO). The company is currently engaged in discussions with major global investment banks, including Bank of America Securities, Morgan Stanley, and Nomura, to select advisers for the IPO. Further discussions are expected to involve additional banks in the coming weeks.

The IPO is anticipated to raise around ₹10,000 crore (approximately $1.2 billion), with HDFC Bank planning to dilute its stake by nearly 10%. The non-banking finance company (NBFC) is in the final stages of appointing lead managers for the offering after receiving approval from HDFC Bank last month to commence the listing process.

Sources suggest that HDB Financial Services believes this is an opportune time for the IPO, given the buoyant market conditions. On July 20, HDFC Bank’s board granted in-principle approval to begin the listing process for HDB. A committee of directors was assigned to oversee the procedure to comply with Reserve Bank of India (RBI) regulations.

Industry Outlook:

The Indian economy is expected to grow robustly, driven by strong investment, rising private consumption, and easing commodity prices. This growth trajectory creates a favourable environment for financial services.
The NBFC sector is well-positioned to support India’s financial growth, with increased credit availability driving enterprise expansion and financial inclusion. Enhanced regulatory norms are expected to improve industry governance and operational flexibility.

HDB Financial Services IPO Objectives

The objectives of HDB Financial Services IPO have not been disclosed.

About HDB Financial Services Limited

HDB Financial Services Ltd was founded on June 4, 2007, in Ahmedabad as a non-deposit taking Non-Banking Finance Company (NBFC), operating under Section 45-1A of the RBI Act, 1934. As a key player in the financial sector, the company is backed by HDFC Bank Ltd., which holds a substantial shareholding.

In the fiscal year 2023, HDB Financial Services reported a total income of ₹12,402.88 crore and a net profit of ₹1,959.35 crore. The company has earned a high credit rating of AAA from CARE and AAA/Stable from CRISIL for its long-term loans, reflecting its strong financial stability.

Known for its expertise in loan origination and underwriting, HDBFS offers a diverse range of financial solutions tailored to meet various customer needs. The company’s portfolio includes both secured and unsecured loans, along with fee-based products and Business Process Outsourcing (BPO) services. HDB Financial Services caters to the growing needs of India’s middle market and SMEs, which are often underserved by larger banks, creating a niche market for its products and services.

Peer Details

All the listed NBFCs can be considered as peers of HDB Financial Services.

How to Check the Allotment Status of the HDB Financial Services IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

IPO Financials

Particulars	Year ending on March 31, 2023	Year ending on March 31, 2022
Revenue (in ₹ crore)	12,402.88	11,306.29
Profit After Tax (PAT) (in ₹ crore)	1,959.35	1,011.40
Tax Expenses (in ₹ crore)	668.05	336.16
Assets Under Management (in ₹ crore)	70,084	61,444
Total Borrowings (in ₹ crore)	54,865	48,973
Earnings Per Share (₹)	24.78	12.81

Know before investing

Strengths

Strong parentage and conservative policies provide access to cost-effective funding.
Senior professionals from HDFC Bank lead with extensive financial services expertise.
Comprehensive risk management processes and regular asset quality reviews ensure financial health.
Maintains strong relationships with various banks and financial institutions for effective operations.

Risks

Any failure in the company’s risk management processes could negatively affect asset quality and overall financial stability.
Disruption in funding sources could significantly affect liquidity and financial stability.
High default rates among individual and small enterprise borrowers could negatively impact financial performance.
Compliance with evolving regulatory requirements might impact operations and financial results.