HDB Financial’s Rs 12,500 crore IPO: 10 key facts investors should know before June 25

Investor interest is building around the upcoming initial public offering of HDB Financial Services, the non-banking finance arm backed by HDFC Bank. At Rs 12,500 crore, the long-awaited issue is poised to be the largest of 2025 so far, drawing attention from both institutional players and retail participants. As the subscription window nears, here are 10 key facts investors should know.

1. GMP points to strong debut

As of June 20, the grey market premium for HDB Financial stood at Rs 83, implying a listing price of Rs 823, an 11.22% premium to the issue’s upper band. Market watchers note the GMP trend has been upward in recent sessions, signalling expectations of a firm listing.

2. The largest IPO of the year to date

With a total issue size of Rs 12,500 crore, HDB Financial’s IPO is set to be the biggest in 2025 so far. It also ranks as the largest public offering since Hyundai Motor India’s Rs 27,000 crore IPO last year.

3. HDB Financial Services IPO price band

The price band for the issue has been fixed at Rs 700 to Rs 740 per share. Investors are advised to consider bidding at the cut-off to improve allocation chances in the event of oversubscription.

4. Subscription window

The IPO will open for subscription on Tuesday, June 25, and close on Thursday, June 27. The basis of allotment is expected to be finalised on Monday, June 30.

5. Tentative listing

Shares of HDB Financial are expected to list on both the BSE and NSE on Wednesday, July 2, subject to final regulatory approvals.

6. Offer structure

The IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale worth Rs 10,000 crore by HDFC Bank, which currently holds a 94.6% stake in the company. The share sale forms part of the bank’s broader capital optimisation strategy.

7. Quotas reserved

The issue includes reserved portions for eligible employees of HDB Financial as well as shareholders of parent HDFC Bank.

8. Application sizes and investment requirements

Retail investors can apply for a minimum of 20 shares, amounting to Rs 14,000 at the lower band and Rs 14,800 at the upper band. For small non-institutional investors applicants, the minimum investment is Rs 2,07,200 (14 lots); for big non-institutional investors, it is Rs 10,06,400 (68 lots).

9. Managed by a consortium of global and domestic banks

The IPO is being led by a 13-member syndicate of book-running lead managers, including BofA Securities India, Goldman Sachs (India), Morgan Stanley, JM Financial, Motilal Oswal, and others. MUFG Intime India (Link Intime) is the registrar.

10. Key player in India’s NBFC sector

HDB Financial Services operates across retail and commercial lending segments, offering products such as personal loans, vehicle loans, gold loans, and loans against property. The company has a wide presence in semi-urban and rural markets, and intends to use the fresh issue proceeds to bolster capital adequacy and support lending growth.

Also read | HDFC Bank shares in focus as Rs 12,500-crore HDB Financial IPO opens next week

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)