HDB Financial Services Gets SEBI Approval for Rs.12,500 Crore IPO

HDB Financial Services Limited, a non-banking financial company (NBFC) owned by HDFC Bank, has received the green signal from SEBI (Securities and Exchange Board of India) to launch its Initial Public Offering (IPO). This move marks an important step for HDB Financial as it prepares to go public and raise a significant amount of ₹12,500 crore from the market.

What Is HDB Financial’s IPO Plan?

The IPO of HDB Financial Services will be a combination of two parts:

• Fresh Issue: The company will issue new shares worth ₹2,500 crore to raise fresh capital.
• Offer for Sale (OFS): HDFC Bank, which holds a 94.64% stake in HDB Financial, will sell shares worth ₹10,000 crore through the offer for sale route.

This means that while the company itself will raise some money through new shares, a major portion of the IPO will allow HDFC Bank to sell part of its holding in the company.

When Was the IPO Proposal Filed?

HDB Financial had submitted its Draft Red Herring Prospectus (DRHP) to SEBI in October 2023. After completing the necessary formalities and waiting period, SEBI has now granted the approval for the IPO.

Other Companies Approved for IPO Alongside HDB

Along with HDB Financial Services, SEBI has also approved IPO proposals from other companies, including:

• A-One Steels India Limited
• Shanti Gold International Limited
• Dorf-Kettle Chemicals India Limited
• Shreeji Shipping Global Limited

This highlights growing momentum in the IPO market in India.

Shareholder Quota and Investment Banks Involved

The IPO will also have a shareholder quota, which means some portion of the shares may be reserved for existing shareholders of HDFC Bank.

According to earlier reports, HDB Financial has shortlisted several top global and Indian banks to manage the IPO, including:

• Morgan Stanley
• Bank of America
• Nomura
• ICICI Securities
• Axis Capital
• IIFL Securities

These investment banks will help with the listing process, book-building, and attracting investors.

HDB’s Market Valuation and Growth

Currently, HDB Financial Services has an estimated market capitalization of ₹1.01 lakh crore based on the price of its unlisted shares, which are trading at around ₹1,275 per share.

Once listed, HDB is expected to become one of the largest finance companies in India by market cap, competing with other major NBFCs and financial service providers.

Why Is This IPO Important?

The IPO is not just about raising money. It is also a regulatory requirement. In September 2023, the Reserve Bank of India (RBI) announced that all NBFCs identified in the ‘upper layer’ must get listed on stock exchanges within three years.

Since HDB Financial falls under this category, the company needs to be listed before September 2025 to comply with RBI rules. This IPO is a step towards meeting that deadline.

About HDB Financial Services

• Established: 2007
• Type: Non-Banking Financial Company (NBFC)
• Branches: Over 1,680 branches across India
• Services Offered:
  • Personal Loans
  • Business Loans
  • Gold Loans
  • Auto Loans
  • Secured and Unsecured Lending

As of the June 2025 quarter, HDB Financial reported a net worth of ₹13,300 crore, indicating strong financial health.

Conclusion

The approval of the ₹12,500 crore IPO is a major milestone for HDB Financial Services. It will help the company raise funds, allow HDFC Bank to unlock value, and ensure compliance with RBI’s listing mandate. For investors, this could be an exciting opportunity to invest in one of India’s top-performing NBFCs with a strong track record and a wide customer base.