Shares in the initial public offering (IPO) of the non-banking financial company backed by HDFC Bank, will be offered in a price band of ₹700-740 apiece, at the upper end of which the company will end up raising up to ₹12,500 crore. Bids can be made for a minimum of 20 shares or multiples thereof.

HDB Financial's IPO will open on June 25 and close on June 27, with the anchor portion reserved for June 24.

The IPO is a combination of a fresh issue of ₹2,500 crore and an offer for sale of ₹10,000 crore from HDFC Bank, which holds a 94.3% stake.

HDB Financial plans to use the net fresh issue proceeds for augmentation of its Tier-1 capital base to meet the company's future capital requirements including onward lending.

Nearly 50% of the offer will be allocated to qualified institutional buyers, 15% to non-institutional bidders, and the remaining 35% to retail investors.

The company is targeting a post-money valuation of around $7.2 billion (around Rs 62,000 crore) at the higher end of the price band.

HDB Financial's 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.

HDB Financial 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.

JM Financial, BNP Paribas, Bofa Securities India, Goldman Sachs (India) Securities, HSBC Securities & Capital Markets, IIFL Capital Services, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory And Securities (India), Nuvama Wealth Management, UBS Securities India are the book running lead managers of the HDB Financial IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.

The allotment for the HDB Financial IPO is expected to be finalised by June 30, and the shares will be listed on BSE, NSE with a tentative listing date fixed as July 2.

Shares of HDFC Bank, the parent company and the country's largest private lender, ended little changed on Thursday at ₹1,933.1 apiece.