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The initial public offering (IPO) of HDB Financial Services, the non-bank arm of HDFC Bank, was over-subscribed 16.69 times, powered by institutional interest, signalling renewed investor appetite for large public offerings.
Qualified institutional buyers (QIBs) drove the demand, with their reserved portion getting oversubscribed by 55.47 times, while the non-institutional investors’ segment showed moderate interest with 9.99 times over-subscription. Retail individual investors subscribed 1.41 times of their allocated portion, with most opting for cut-off price bids. The employee category witnessed 5.71 times subscription, while existing shareholders subscribed 4.26 times over their reserved quota.
The overall issue size of the IPO is ₹12,500 crore — the largest in the current calendar year — and the price band of the issue has been fixed at ₹700-740 per equity share. As against the issue size, the IPO received bids for ₹1.61 lakh crore.
In a recent interaction with businessline, G Ramesh, MD & CEO of HDB Financial Services, had said the proceeds from the capital raise would be used for on-lending, business growth and augmenting the NBFC’s capital base. He clarified that the NBFC does not share or receive any business leads from HDFC Bank, doesn’t share any office space with the lender, and is not reliant on its parent for operational purposes. His comments come in the backdrop of the Reserve Bank of India’s (RBI) 2024 draft norms which state that only a single entity within a bank group can undertake a particular form of permissible business. HDFC Bank’s stake in HDB will reduce to 75 per cent from 94 per cent post IPO, the MD said.
“As there is a renewed interest in primary market after a brief pause, company managements are raising money with decent valuations on euphoria,” said Kranthi Bathini, Director, equity strategy, WealthMills Securities.
Meanwhile, another NBFC earlier backed by HDFC Bank — Credila Financial Services — has filed updated draft papers with SEBI for a ₹5,000-crore IPO. The issue comprises a fresh issue of ₹3,000 crore of shares and OFS of ₹2,000 crore. The OFS portion of ₹2,000 crore comprises up to ₹950 crore by promoter Kopvoorn BV and ₹1,050 crore by HDFC Bank.
Published on June 27, 2025
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