HDB Financial Services IPO: GMP And Price

HDB Financial IPO- Complete Overview 

HDB Financial IPO, a Mainboard IPO, is a book-built issue of Rs. 12500 Cr (16.89 Cr Shares) by HDB Financial Limited, which was incorporated in 2007. The retail-focused, non-banking financial company also provides Data Entry, Back Office, and Collection and Sales Support BPO services to its Promoter, and offers fee-based projects such as the distribution of insurance products to primarily lending customers.

The company offers an omnichannel “phygital” distribution model wherein it offers strong branch presence along with an in-house telesales team complemented with several outside distribution networks and channel partners.

Business Verticals:

Enterprise Lending (EL): Was the first business vertical to be offered in 2008. They provide a range of secured and unsecured loans to MSME customers and specific categories of salaried customers, mainly through their branch network.

Asset Finance: They also provide new and pre-owned commercial vehicles, construction equipment, and tractors to their customers who are income generators.

Consumer Finance: Extend loans to retail customers to meet their personal or household expenditures.

by March 31, 2025, with more than 80% of them being located outside the 20 largest cities in India. As of March 31, 2025, the company’s branch network was pan-India with 1,771 branches in 1,170 towns and cities in 31 States and UTs, of which over 80% of branches were in cities other than the top 20 cities in India by population. 

This new IPO is to be launched on 25 Jun 2025, and its ‘initial public offering’ will end on 27 Jun 2025.

 

HDB Financial IPO Details

This Mainline IPO comprises a fresh issue of 3.38 crore Shares (Rs. 2,500 Cr) and an offer for sale (OFS) of 13.51 crore Shares (Rs. 10,000 Cr). The HDB Financial IPO listing date is 02 July 2025. The HDB Financial IPO price is between Rs. 700 to Rs. 740 for each Share.

If you want to apply for the IPO, click to open a Demat Account.

 

 

Company Financial

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	1,08,663.29	92,556.51	70,050.39
Total Revenue	16,300.28	14,171.12	12,402.88
PAT	2,175.92	2,460.84	1,959.35
Net Worth	14,936.50	12,802.76	10,436.09
Reserves & Surplus	15,023.97	12,949.63	10,645.57
Borrowings	87,397.77	74,330.67	54,865.31

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in million)

Net Cash Flow In Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	(136,263.3)	(167,360.4)	(68,506.1)
Net Cash Flow Investing Activities	11,590.2	(21,455.6)	9,733.2
Net Cash Flow Financing Activities	127,699.2	191,335.5	57,959.9

 

Vertical-wise Revenue Bifurcation (Loan Book)

(Source RHP)

 

The Objective of the Issue

• Expansion of the company's Tier I capital base to satisfy its future capital needs, including further lending under any of its business verticals, such as consumer finance, asset finance, and enterprise lending.

Click to check the IPO application status.

 

Peers of HDB Financial

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Bajaj Finance Limited	1	26.89	34.30
Sundaram Finance Ltd.	10	170.53	28.10
L&T Finance Limited	10	10.61	17.90
Mahindra & Mahindra Financial Services Ltd.	2	18.32	14.50
Cholamandalam Investment And Finance Company Ltd.	2	50.72	31.40
Shriram Finance Limited	2	50.82	13

 

 

Evaluation

The HDB Financial Limited IPO price is Rs. 700 to Rs. 740 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Dec 2025 with an EPS of Rs. 27.4 from the last year, the resulting P/E ratio is 27x.

Considering the weighted EPS of Rs. 28.2 for the last three years, the P/E ratio is 26.24x.

Explore Kalpataru Limited IPO.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 23.2.

Particulars	P/E Ratio (x)
Highest	34.3
Lowest	13
Average	23.2

In simple words, the P/E ratio of this IPO (27x), compared with the industry’s average P/E of 23.2x, has an overvaluation (on a P/E ratio basis only). Hence, the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Backed by HDFC Bank, India’s leading private sector bank.

• Across MSME, vehicle, and consumer finance segments.

• 1,772 branches and over 140,000 partners across India.

• ROE ~19.5%, strong margins, and well-rated (AAA) debt profile.

• Over 95% digital onboarding, integrated tech + human touch.

 

IPO’s Weaknesses

• High P/E and P/B compared to some peers; leaves limited margin of safety.

• PAT declined in FY2025 despite revenue growth due to higher provisioning.

• Low historical payouts; returns rely primarily on capital appreciation.
  
  

HDB Financial IPO GMP Today

HDB Financial IPO GMP is Rs. 69 as of June 21, 2025, when this information was written. With the price of Rs. 740, the estimated HDB Financial IPO listing price might be Rs. 809.

 

 

HDB Financial Limited IPO Timetable (Tentative)

The HDB Financial IPO date is from 25 Jun to 27 Jun. With IPO allocation on Jun 30, refund initiation on Jul 01, and listing on Jul 02, 2025.

Events	Date
IPO Opening Date	25 Jun 2025
IPO Closing Date	27 Jun 2025
IPO Allotment Date	30 Jun 2025
Refund Initiation	01 Jul 2025
IPO Listing Date	02 Jul 2025

 

IPO Other Details 

The IPO with a face value of Rs. 10 per Share, offers an IPO size of 16,89,18,919 Shares (Rs. 12500 Cr) and it will be listed at BSE and NSE.

IPO Opening & Closing Date	25 Jun 2025 to 27 Jun 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 700 to Rs. 740
Lot Size	20 Shares
Issue Size	16,89,18,919 Shares (Rs. 12500 Cr)
Offer for Sale	13,51,35,135 Shares (Rs. 10,000 Cr)
Fresh Issue	3,37,83,784 Shares (Rs. 2500 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	MUFG Intime India Private Limited (Link Intime)

 

HDB Financial IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (20 Shares) amounting to Rs. 14,800 and 13 Lots (260 Shares) for Rs. 1,92,400 respectively, while for HNI investors, the minimum Lot is 14 (280 Shares) amounting to Rs. 2,07,200.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
S-HNI (Minimum)	14 Lots
S-HNI (Maximum)	67 Lots
B-HNI (Minimum)	68 Lots

 

IPO Reservation

Institutional Share Portion	44.92%
Retail Investors' Share Portion	31.44%
Non-Institutional Shares Portion	13.48%

 

 

Promoters and Management of HDB Financial Ltd. 

• HDFC Bank Limited.

Pre-Issue Promoter Shareholding	94.32%
Post-Issue Promoter Shareholding	74.19%

 

IPO Lead Managers

• BNP Paribas

• JM Financial Limited

• Bofa Securities India Limited

• Goldman Sachs (India) Securities Private Limited

• HSBC Securities & Capital Markets Pvt Ltd.

• IIFL Capital Services Limited

• Jefferies India Private Limited

• Morgan Stanley India Company Pvt Ltd.

• Motilal Oswal Investment Advisors Limited

• Nomura Financial Advisory And Securities (India) Pvt Ltd.

• Nuvama Wealth Management Limited

• UBS Securities India Private Limited.
  
  

Dividend Policy

Particulars	FY25	FY24	FY23
Interim Dividend	1,587.9	1583.3	712
Final Dividend	795.8	793.1	870.5
Total Dividend	2,383.7	2,376.4	1,582.5

 

Conclusion

With HDFC Bank's solid reputation and widespread presence in important lending sectors throughout India, the HDB Financial IPO is an opportunity for investment. It is well-positioned for future expansion due to its strong financials, varied loan portfolio, and digitally driven processes. However, in comparison to peers in the business, the IPO's valuation seems a little high. 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.