HDFC Bank’s subsidiary, HDB Financial Services, may launch its Initial Public Offer (IPO) by mid-July, according to sources shared with Moneycontrol.
The company is planning to raise around ₹12,500 crore through this IPO. If this happens, it will be the largest IPO of the year so far, surpassing Hexaware Technologies’ ₹8,750 crore IPO in February.
Sources say HDB Financial is currently working on its updated draft red herring prospectus (UDRHP), which is required before submitting the final red herring prospectus (RHP).
The UDRHP is expected to be filed with SEBI by the end of this month. After that, depending on stock market conditions, the IPO could launch in the first or second week of July.
SEBI has already approved the company’s IPO plans. HDB Financial had applied to SEBI in October 2024 and received approval at the end of May. So far, the company hasn’t made any official statement on this matter.
HDB Financial Services, founded in 2007, is a non-banking finance company (NBFC) and a part of HDFC Bank, India’s largest private bank.
It provides loans to individuals and businesses. The company operates in three key areas: enterprise lending, asset finance, and consumer finance.
It has a strong presence in both secured and unsecured loans, consumer loans, and loans against property — especially for customers with limited access to the traditional banking system.
Why is HDB Financial Services Launching an IPO?
The main reason is a rule set by the Reserve Bank of India (RBI). In 2022, the RBI issued a guideline requiring NBFCs classified under the “upper layer” to be publicly listed by September 2025.
As of September 2024, HDB Financial’s total loan book stood at ₹98,620 crore, with an annual growth rate (CAGR) of 20.93% since March 2022.
Its net profit in FY 2023–24 was ₹2,460 crore, growing at a CAGR of 55.9% between FY22 and FY24.
