HDB Financial Services, the non-banking financial subsidiary of HDFC Bank, has filed for an initial public offering (IPO) to raise up to ₹12,500 crore. This follows an earlier announcement by HDFC Bank, which holds a 94.6% stake in HDB Financial.
In this IPO, HDFC Bank plans to offload shares worth up to ₹10,000 crore, while HDB Financial will issue new shares totaling ₹2,500 crore. The final offer price, price band, and minimum bid size will be set later with guidance from lead managers Jefferies, Goldman Sachs, and BofA Securities.
Proceeds from HDB Financial’s share of the IPO are earmarked to bolster its capital base, expand lending operations, and meet regulatory compliance requirements.
This IPO marks HDFC Group’s first public listing in six years and aligns with regulations requiring certain large non-banking financial institutions to go public by September 2025.
Established in 2007, HDB Financial offers a range of secured and unsecured loans, including consumer, business, and microloans, and operates over 1,680 branches nationwide. As of September 30, its gross loan portfolio stood at ₹98,620 crore, reflecting nearly 21% growth over two years.
HDB Financial’s profit has shown strong growth, reaching ₹2,460 crore in FY24—a 56% increase since FY22. However, its net interest margin (NIM) dipped slightly from 8.25% in FY23 to 7.85% in FY24, a key metric for evaluating lending profitability.
