HDB Financial IPO: If you invest in the stock market or are looking for the IPO of a trustworthy company, a great opportunity is about to arrive. In fact, HDB Financial Services, a subsidiary of HDFC Bank, is bringing its first public issue.

The company has decided that its IPO will open on June 25, 2025, and bidding will be allowed until June 27. For anchor investors, the bidding window will open a day earlier on June 24.

What is the Issue Size and Price Band?

The total size of this IPO has been fixed at ₹12,500 crore, out of which ₹2,500 crore worth of new shares will be issued in the market, and the remaining ₹10,000 crore worth of shares will be sold by HDFC Bank itself.

The company has set the price of shares for this issue between ₹700 to ₹740 per share. If we consider the upper limit of this range, i.e., ₹740, the total valuation of the company is estimated at around ₹61,400 crore.

Why is HDB Financial Launching an IPO?

HDB Financial is a non-banking financial company (NBFC) that provides loans and financial services. The money raised through this issue will be used by the company to strengthen its capital base.

That means the funds will help increase the company’s capacity to lend more in the future. RBI had also set a timeline for NBFCs to get listed, after which HDFC took this major step.

How Much Will Retail Investors Can expect?

If you are a retail investor, you’ll be glad to know that 35% of this IPO has been reserved for retail investors.

Apart from this, 50% will be reserved for large institutional investors, and 15% for NIIs, i.e., non-institutional investors. Investors can apply for a minimum of 20 shares or in multiples thereof.

Where Will the Shares Be Listed and Who is Managing the Issue?

After the IPO, the company’s shares are expected to be listed on both BSE and NSE on July 2. Several major names are involved in managing this issue including JM Financial, Goldman Sachs, HSBC, Motilal Oswal, Morgan Stanley, BNP Paribas, and Nomura — all top international firms.

Will HDFC Bank Still Have Control After the IPO?

Yes, even after the IPO, HDB Financial will remain a subsidiary of HDFC Bank. The only difference will be a slight reduction in the bank’s stake, but control over the company will still rest with HDFC Bank.

A Golden Opportunity for Investors

HDB Financial IPO could prove to be a great opportunity for those looking to invest in a strong and reliable company.

Backed by a bank like HDFC, the company’s growth and RBI’s guidelines have made this issue a hot topic. Now it remains to be seen how the market responds to it.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before making any investment decisions. Investing in the stock market involves risks.