June 25, 2025: HDB IPO– The much-anticipated IPO of HDB Financial Services, one of the largest non-banking financial companies (NBFCs) in India, officially opens for subscription today, June 25, 2025. Investors will have until Friday, June 27, to apply for shares in this massive public offering, which is valued at ₹12,500 crore, making it the biggest NBFC IPO in recent years.
What’s on Offer?
The IPO is a combination of a fresh issue worth ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore by HDFC Bank, the promoter of HDB Financial Services. Currently, HDFC Bank holds over 94% stake in HDB Financial, with 750.6 million equity shares. The fresh issue proceeds will be used to fund the company’s expansion plans.
Price Band and Market Sentiment
The price band has been fixed between ₹700 and ₹740 per equity share, with a face value of ₹10 each. Interestingly, the grey market premium (GMP) for the IPO is trading nearly 10% higher, indicating strong investor demand despite the price band being set significantly lower than the unlisted share price, which was hovering around ₹1,250 before the IPO announcement.
This discount has raised some concerns among early investors in unlisted shares who may face a notional loss, but it also presents an attractive entry point for new investors looking to participate in one of the biggest IPOs of the year.
Why Is This IPO Important?
- Size and Scale: With a total size of ₹12,500 crore, this is the fifth largest IPO in India in the last 20 years, joining the ranks of giants like Hyundai, LIC, Paytm, and Coal India.
- Sector Spotlight: Being a leading NBFC backed by HDFC Bank, the IPO highlights growing investor interest in financial services companies.
- Growth Potential: The fresh funds raised will support HDB Financial Services’ plans for expanding its lending portfolio, aiming to capture more market share in the retail and corporate finance segments.
Risks to Watch
A key risk associated with the IPO is the company’s licensing agreement with HDFC Bank, which allows it to use the HDFC brand. Any changes to this agreement in the future could have significant implications for the company’s branding and business prospects.
How to Apply
Interested investors can apply for the IPO through their brokers or online trading platforms until June 27, 2025. Given the size and the demand, potential investors are advised to review the prospectus and consider the risks carefully before subscribing.
The HDB Financial Services IPO marks a landmark event in the Indian capital markets, offering a rare chance to invest in a high-profile NBFC backed by one of India’s largest banks. With strong investor interest reflected in the grey market premium and the company’s robust growth plans, this IPO is set to be a key highlight of 2025’s investment calendar.