HDB Financial Services Limited is set to launch one of the most anticipated initial public offerings (IPOs) of the year. Backed by HDFC Bank, this retail-focused Non-Banking Financial Company (NBFC) will offer a ₹12,500 crore IPO from June 25 to June 27, 2025. The issue includes a mix of a fresh issue and offer for sale, making it a significant event in the upcoming IPO calendar for 2025. The platform for applying for the IPO has also evolved, with HDFC Sky offering a One-Click IPO feature, simplifying the process for investors.

Issue Size And Structure: Breakdown Of The HDB Financial IPO

The HDB Financial IPO is a ₹12,500 crore book-building issue, structured into two parts: ₹2,500 crore worth of a fresh issue (3.38 crore shares) and ₹10,000 crore worth of offer for sale (13.51 crore shares). The price band for the shares has been set between ₹700 and ₹740 each. Retail investors can bid in lots of 20 shares, with the minimum application amount at ₹14,800 at the cut-off price. The tentative listing date on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is scheduled for July 2, 2025.

Allocations And Shareholding Structure

The IPO includes specific allocations for different investor categories. Qualified Institutional Buyers (QIBs) will be allotted 44.92% of the total issue, Non-Institutional Investors (NIIs) will receive 13.48%, and retail investors will be allocated 31.44%. There are also separate provisions for employees and existing shareholders. The allocation details and the overall structure are designed to ensure a balanced distribution among various investor types.

Detailed Breakdown Of Lot Sizes For Different Investor Categories

The IPO offers different lot sizes based on investor categories, as outlined below:

• Retail Investors: Minimum bid of 1 lot (20 shares) = ₹14,800; maximum bid of 13 lots (260 shares) = ₹1,92,400.
• Small Non-Institutional Investors (sNII): Minimum bid of 14 lots (280 shares) = ₹2,07,200; maximum bid of 67 lots (1,340 shares) = ₹9,91,600.
• Big Non-Institutional Investors (bNII): Minimum bid of 68 lots (1,360 shares) = ₹10,06,400.

The IPO’s allotment process will conclude by June 30, 2025, with share credits and refunds scheduled for July 1, 2025. Investors should confirm their UPI mandate by 5 PM on the final day of bidding.

Simplified Application Process Via HDFC Sky’s One-Click IPO Feature

Applying for the HDB Financial IPO has never been easier, thanks to the One-Click IPO feature offered by HDFC Sky. Investors can seamlessly apply through the mobile or desktop platform by following a few simple steps:

• Log into your HDFC Sky account on mobile or desktop.
• Open the “Indian Stocks” tab and navigate to the “IPO” section.
• Find “HDB Financial Services IPO” and click “Apply Now.”
• Enter bid details such as lot quantity, price, and investor category.
• Choose UPI as your payment method.
• Approve the UPI mandate in your app.
• Submit the application and receive a confirmation notification.

This process eliminates paperwork, offering speed and convenience for users applying through either the mobile app or desktop interface.

About HDB Financial Services: Strong Backing And Diversified Business Model

Founded in 2007, HDB Financial Services operates in three primary sectors: Enterprise Lending, Asset Finance, and Consumer Finance. The company also provides BPO services to its parent company, HDFC Bank. As of March 31, 2025, HDB Financial has 1,771 branches across 1,170 cities and towns, with over 80% of its branches located outside India’s top 20 cities. With over 60,000 employees, HDB employs a “phygital” distribution model that blends physical and digital channels to enhance customer outreach.

Use Of IPO Proceeds And Future Outlook

The fresh issue proceeds will be utilized to strengthen HDB’s Tier-I capital base, which is critical for future growth and meeting regulatory capital adequacy norms. Pre-issue, HDFC Bank holds a 94.32% stake in HDB, which will reduce to 74.19% post-issue. This will help expand public shareholding while complying with regulatory guidelines.

The HDB Financial Services IPO presents a structured investment opportunity for a range of investors. The application process through HDFC Sky’s One-Click IPO feature ensures that investors can apply quickly and easily. With a strong institutional backing, a diversified business model, and a large branch network, HDB Financial is well-positioned for long-term growth. Investors looking for exposure to a solid, growing financial services firm should consider this high-profile listing.

(From ANI)

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