HDB Financial Services IPO Launch on June 25: HDFC Bank May Earn Rs.9,373 Crore Profit

HDB Financial Services, a leading non-banking financial company (NBFC) and a subsidiary of HDFC Bank, is all set to launch its Initial Public Offering (IPO) on Wednesday, June 25, 2025. This IPO is among the most awaited public issues of the year, and investors are showing strong interest in the upcoming listing.

IPO Details: Price Band and Lot Size

• The company has fixed the IPO price band between ₹700 and ₹740 per share.
• To participate in the IPO, investors will need to bid for a minimum of 20 shares or multiples of 20 thereafter.

How HDFC Bank Will Benefit

HDFC Bank, which owns a significant stake in HDB Financial Services, is expected to make a substantial profit of around ₹9,373 crore through the IPO.

• HDFC Bank had purchased its stake in HDB Financial at an average price of ₹46.60 per share.
• If the shares are sold at the upper end of the price band (₹740), the bank stands to gain a massive windfall profit, thanks to the Offer for Sale (OFS) route.

Strong Grey Market Buzz

Even before the shares hit the stock market, HDB Financial is generating buzz in the grey market, which is an unofficial trading platform where shares are bought and sold before official listing.

• As of 4:32 PM, the Grey Market Premium (GMP) for HDB Financial shares was around ₹88 per share.
• This represents an 11.8% premium over the upper price band, indicating healthy investor interest.

Who’s Managing the IPO?

Several major investment banks and financial institutions are acting as the book-running lead managers for this IPO, including:

• Morgan Stanley India
• Motilal Oswal Investment Advisors
• Jefferies India
• BNP Paribas
• JM Financial
• HSBC Securities
• Bofa Securities India
• Goldman Sachs (India)
• IIFL Capital
• Nomura Financial Advisory
• Nuvama Wealth Management
• UBS Securities India

Their role is to manage the IPO process, attract investors, and ensure successful subscription.

Company Financials: Slight Dip in Profit

Although the IPO is drawing strong investor interest, HDB Financial’s recent financial performance has seen a small decline in profitability:

• In FY25, the company reported a Profit After Tax (PAT) of ₹2,175.92 crore.
• This is lower than the ₹2,460.84 crore PAT reported in the previous financial year (FY24).

Despite the dip, the company remains financially strong and its IPO is considered a major event in the NBFC space.