HDB Financial Services Ltd, the non-banking financial arm of HDFC Bank, is all set to make headlines with its massive ₹12,500 crore initial public offering (IPO), expected to launch by mid-July. This will be the largest IPO of the year, overtaking Hexaware Technologies’ ₹8,750 crore issue earlier in February.
The move marks a revival of investor enthusiasm in India’s primary market, with HDB’s offering becoming a key highlight of 2025 so far.
UDRHP Filing in Final Stages
According to sources cited by Moneycontrol, HDB Financial Services is in the final stages of preparing its Updated Draft Red Herring Prospectus (UDRHP). This important document is a revised version of the earlier Draft Red Herring Prospectus (DRHP), incorporating changes and updates suggested by market regulators.
“The UDRHP is expected to be filed before the end of June,” sources said, indicating that the company is on track to launch the offer in early to mid-July — barring any unforeseen market volatility.
The DRHP was initially submitted on October 30, and the Securities and Exchange Board of India (SEBI) gave the green light to proceed at the end of May. After the UDRHP is filed and approved, the company will submit the Red Herring Prospectus (RHP) to SEBI and the Registrar of Companies — the final step before the IPO hits the market.
Why the IPO Now?
The upcoming IPO is not just about capital-raising — it’s also in response to regulatory compliance. As per the Reserve Bank of India’s 2022 mandate, all large NBFCs classified under the “upper layer” category must be listed on the stock exchange by September 2025.
This regulatory push is the primary reason behind HDB’s IPO, ensuring that the company meets its compliance obligations well in advance.
Business Overview of HDB Financial Services
Founded in 2007, HDB Financial Services has steadily built its presence across India, offering a wide range of loan products to both individuals and businesses. Its operations are structured into three core segments:
Enterprise Lending
Asset Finance
Consumer Finance
The company is well-known for both secured and unsecured loans, including consumer loans, loans against property, and other financing services tailored to underserved customer segments. Its focus has remained on building a granular loan book that minimizes concentration risk.
“Our top 20 customers accounted for less than 0.36% of our total gross loans as of September 30, 2024,” the company stated in its DRHP.
Strong Financial Growth Ahead of IPO
HDB Financial’s recent financial performance adds weight to the IPO’s potential. The company’s gross loan book stood at ₹98,620 crore as of September 30, 2024, representing a compound annual growth rate (CAGR) of 20.93% between March 2022 and September 2024.
Even more impressively, HDB posted a net profit of ₹2,460 crore in FY24, showcasing a CAGR of 55.9% over the last two financial years.
With an average ticket size of ₹1.45 lakh per loan, the company has targeted small borrowers and the underbanked population — a strategy that has proven resilient and profitable.
Market Sentiment and Investor Interest
The ₹12,500 crore IPO is already being seen as a signal of bullish sentiment returning to India’s IPO market. The successful launch of HDB’s IPO would not only surpass Hexaware Technologies’ February offering, but also boost overall momentum for other companies planning to tap public markets.
If market conditions remain stable, this could open the door for a wave of NBFCs and private firms to follow suit, especially those bound by regulatory timelines.
As of now, no official comment has been provided by HDB Financial Services regarding the IPO timeline. However, preparations appear to be progressing on schedule.
Conclusion
With its record-breaking ₹12,500 crore IPO, HDB Financial Services is poised to make a strong market debut by July. Backed by solid financials, a diversified loan portfolio, and regulatory momentum, the IPO could become a defining event for India’s primary market in 2025.
Investors and analysts alike will be closely watching this public issue, which not only reflects the strength of the NBFC sector but also signals renewed investor confidence in Indian equities.
