The initial public offering (IPO) of HDB Financial Services, a non-banking financial company (NBFC) promoted by  ,will open for subscription on Wednesday, aiming to raise Rs 12,500 crore. This marks one of the largest public issues in 2025 so far, and comes amid renewed interest in India’s financial sector IPOs.

The IPO will remain open till Thursday, June 27. The price band has been set between Rs 700 and Rs 740 per share. Ahead of the issue opening, the GMP is around Rs 74, which is 10% premium over the issue price.

The offering consists of a fresh issue worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which currently holds 95.5% in the company.

Strong financials and business presence


HDB Financial is one of the leading NBFCs in the country with a loan book of Rs 1.06 lakh crore as of March 31, 2025. The company reported a net profit of Rs 2,176 crore for FY25, a significant rise from Rs 1,359 crore a year earlier.

Its gross non-performing assets (GNPA) stood at 2.49%, while net NPA came in at 1.38%, showing healthy asset quality for a retail-focused NBFC.

The company has a pan-India presence with over 1,700 branches across 1,200 cities and towns, and serves over 1.9 crore customers. Its business spans secured and unsecured personal loans, gold loans, and lending to small and medium enterprises (SMEs).

Valuation and Recommendations

At the upper end of the price band, the IPO values HDB Financial at a post-issue price-to-book value of 3.7 times FY25 estimates. Analysts view this as reasonable, considering its performance and HDFC Bank’s brand backing.

Brokerage houses have given a thumbs up to the IPO. SBI Securities, Ventura Securities, and Anand Rathi all issued ‘Subscribe’ calls, citing strong fundamentals, stable asset quality, and long-term growth prospects. “We believe the IPO is fairly priced given the company’s improving profitability, robust risk management and capital adequacy,” Ventura said in its report.