Latest news with #HDBFinancialServices
New Indian Express
3 hours ago
- Business
- New Indian Express
HDB Financial sets Rs 700–740 price band for Rs 12,500-crore IPO
MUMBAI: HDB Financial Services, a retail-focused NBFC owned by HDFC Bank, has set a price band of Rs 700–740 for its Rs 12,500-crore IPO, marking a steep premium over face value but a sharp discount to grey market rates. At the upper end of the price band, the company will be valued at USD 7.5 billion, compared to the grey market valuation of USD 10.5 billion. The mega issue, the largest from the NBFC space, comprises a Rs 2,500 crore fresh issue of shares of Rs 10 face value and Rs 10,000 crore in offer-for-sale by parent HDFC Bank, which currently holds 94.3% of the company. The remaining 5.7% shares are held by the employees trust and employees through ESOPs, Chief Financial Officer Jaykumar Shah told TNIE at the press meet announcing the issue. Post-issue, HDFC Bank will continue to hold 75% of the equity. HDB Financial, founded in 2008, has been growing rapidly. In FY25, its loan book, 73% of which is secured, crossed the Rs 1-trillion mark, from which it earned a net income of Rs 2,180 crore, up 29% from the previous fiscal. However, asset quality remains a concern, with gross NPAs at 2.3% and net NPAs at 1% of assets. The IPO is also intended to comply with the RBI's October 2022 directive requiring large NBFCs to go public by September 2025. When asked about launching the IPO during a choppy market and at a discount to the grey market price, CEO Ramesh Ganesh said the valuation was arrived at after discussions with investors and bankers. 'We've been doing roadshows for quite some time now, meeting investors globally and locally. We believe the value is derived by talking to investors and bankers, and we worked with them to arrive at the value,' Ramesh said.
News18
5 hours ago
- Business
- News18
HDB Financial Services IPO To Open Next Week: Check Opening Date, Price, GMP, Lot Size, Other Details
Last Updated: HDB Financial Services Ltd is going to open its much-anticipated IPO between June 25 and June 27 to raise Rs 12,500 crore. HDB Financial Services IPO: HDB Financial Services Ltd, the non-banking financial arm of HDFC Bank, is going to open its much-anticipated IPO between June 25 and June 27 to raise Rs 12,500 crore, according to an exchange filing by HDB Financial on Thursday, June 19. Its anchor book will open on June 24. The public issue will become the biggest IPO of 2025 so far, surpassing the Rs 8,750-crore issue by Hexaware Technologies earlier this year. The move signals a strong revival in the Indian primary markets. HDB Financial IPO Opening Date According the filing, the company's IPO will remain open for public subscription next week — between June 25 and June 27. Anchor investors will be able to participate on June 24. HDB Financial IPO Issue Size The IPO aims to raise Rs 12,500 crore, making it one of the largest public issues by a non-banking financial company (NBFC) in recent years. The HDB Financial Services IPO comprises a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which holds 94.3 per cent stake. The firm had filed it's draft red herring prospectus (DRHP) for the IPO in October 2024. HDB Financial IPO Price and Lot Size While the price band and lot size are yet to be officially announced, those details are expected to be included in the Red Herring Prospectus (RHP), which will be filed soon. Its GMP will also be known after the IPO price is revealed. The IPO is primarily in response to the Reserve Bank of India's 2022 regulation mandating all large NBFCs categorised as 'upper layer" to be listed on the stock exchange by September 2025. Founded in 2007, HDB Financial Services provides a broad range of retail loans under three business verticals — enterprise lending, asset finance, and consumer finance. It focuses on both secured and unsecured loans, including personal loans and loans against property, particularly catering to underbanked segments. As of September 30, 2024, the company had a gross loan book of Rs 98,620 crore, with a CAGR of 20.93% from March 2022. Its FY24 profit stood at Rs 2,460 crore, with a CAGR of 55.9% over FY22-FY24. In its DRHP, the company noted that its loan book is highly diversified, with the top 20 customers contributing less than 0.36% of total gross loans. The average loan ticket size was around Rs 1.45 lakh as of September 30, 2024. The company had initially filed its DRHP on October 30, 2023, and received SEBI's approval at the end of May 2025.
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Business Standard
5 hours ago
- Business
- Business Standard
HDFC Bank may pocket ₹9,373-cr profit from HDB Financial Services IPO
HDB Financial Services IPO: India's largest private sector lender, HDFC Bank, is set to gain a whopping ₹9,373 crore profit from the Initial Public Offering (IPO) of its non-banking financial company (NBFC) arm, HDB Financial Services, scheduled to open on June 25, 2025. Notably, the HDB Financial Services IPO is slated to be the largest public offering in India's NBFC sector. That said, the Red Herring Prospectus (RHP) filed by the company reveals that the offering comprises a fresh equity issuance worth ₹2,500 crore, alongside an offer for sale (OFS) in which HDFC Bank will divest part of its stake (135.13 million equity shares) valued at ₹10,000 crore. The price band for the HDB Financial Services IPO has been set between ₹700 and ₹740 per share. If the public issue is fully subscribed at the upper end of the range, HDFC Bank stands to raise ₹10,000 crore from the OFS. Meanwhile, HDFC Bank's average acquisition cost for the shares is ₹46.4 per share, bringing the total acquisition cost for the OFS shares to approximately ₹627 crore, according to the RHP. Thus, the transaction is expected to generate a profit of approximately ₹9,373 crore for HDFC Bank, including payable taxes, if applicable. Currently, HDFC Bank holds a 94.3 per cent stake in HDB Financial Services, which is anticipated to reduce to around 70 per cent post-IPO. Despite the reduction in ownership, HDB Financial Services will remain a subsidiary of HDFC Bank. HDB Financial Services IPO details The public offering of HDB Financial Services will remain available for subscription from Wednesday, June 25 - Friday, June 27. HDB Financial Services has set the price band ₹700-740 per share, with a lot size of 20 shares. A retail investor would require ₹14,800 to bid for one lot or 20 shares of HDB Financial Services IPO. Meanwhile, for a maximum bid of under ₹200,000, retail investors can bid for 260 shares, or 13 lots, in this IPO. HDB Financial Services IPO grey market premium (GMP) today The unlisted shares of HDB Financial Services are commanding a solid premium in the grey markets on Friday. According to sources tracking unofficial market activities, the unlisted shares of HDB Financial Services were trading at ₹840 per share, reflecting a grey market premium of ₹100 or 13.51 percent over the upper end of the issue price. HDB Financial Services IPO allotment date, listing date Following the closure of the subscription window, the basis of allotment of HDB Financial Services IPO shares is expected to be finalized on Monday, June 30. The successful allottees will receive the company's shares in their demat accounts on Tuesday, July 1. Shares of HDB Financial Services are slated to make their D-Street debut by listing at BSE and NSE tentatively on Wednesday, July 2. About HDB Financial Services HDB Financial Services, a subsidiary of HDFC Bank, is one of the leading, diversified retail-focused NBFCs in India in terms of Total Gross Loan Book size, according to the CRISIL Report. Classified as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI), the company operates through three key business verticals—Enterprise Lending, Asset Finance, and Consumer Finance. HDB Financial Services also provides business process outsourcing services, including back-office support, collections, and sales support services to its promoter.
News18
5 hours ago
- Business
- News18
HDB Financial IPO: 10% Issue Reserved For HDFC Bank Shareholders; Check GMP, Price, Opening Date
Last Updated: As the HDB Financial Services IPO has a shareholders quota, investors must have at least one HDFC Bank share to be eligible for the shareholders category. HDB Financial Services IPO: HDB Financial Services Ltd, the non-banking financial arm of HDFC Bank, has announced that its initial public offering (IPO) will be opened on June 25 and will be concluded on June 27. The price band of the IPO has been fixed at Rs 700-740 per share. According to the red herring prospectus, 10% of the Rs 12,500-crore IPO will be reserved for shareholders. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter. The IPO is a fresh issue of Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by parent HDFC Bank, which holds 94.3 per cent stake. HDB Financial IPO Shareholder Quota, Other Reservations As the HDB Financial Services IPO has a shareholders quota, investors must have at least one HDFC Bank share to be eligible for the shareholders category. It will raise their chances of IPO allotment. So, those who have shares of HDFC Bank can participate in the shareholders category in the IPO. The cut-off date for eligibility in shareholder's quota was June 19, 2025. It means the last day to buy HDFC Bank's shares to be eligible for the HDB financial IPO's shareholders quota was June 18. Apart from this, nearly 31.44% of the IPO is reserved for retail investors, 44.92% for QIBs, 13.48% for NIIs, and 0.16% for employees. The IPO aims to raise Rs 12,500 crore, making it one of the largest public issues by a non-banking financial company (NBFC) in recent years. The public issue is the biggest IPO of 2025 so far, surpassing the Rs 8,750-crore issue by Hexaware Technologies earlier this year. The move signals a strong revival in the Indian primary markets. HDB Financial Services has fixed a price band of Rs 700-740 per share for its Rs 12,500 crore Initial Public Offering (IPO). At the upper end of the price band, the company is valued at nearly Rs 61,400 crore. HDB Financial Services IPO GMP Today According to market observers, the GMP of the HDB Financial Services IPO is 11.22%, indicating strong listing gains for investors. The GMP is based on market sentiments and keeps changing. 'Grey market premium' indicates investors' readiness to pay more than the issue price. 11.22 HDB Financial IPO Key Dates The company's IPO will remain open for public subscription next week — between June 25 and June 27. Anchor investors will be able to participate on June 24. Its allotment will take place on June 30, while shares will be listed on both BSE and NSE on July 2. The IPO Objective The IPO is primarily in response to the Reserve Bank of India's 2022 regulation mandating all large NBFCs categorised as 'upper layer" to be listed on the stock exchange by September 2025. HDB Financial Services: Business Overview Founded in 2007, HDB Financial Services provides a broad range of retail loans under three business verticals — enterprise lending, asset finance, and consumer finance. It focuses on both secured and unsecured loans, including personal loans and loans against property, particularly catering to underbanked segments. As of September 30, 2024, the company had a gross loan book of Rs 98,620 crore, with a CAGR of 20.93% from March 2022. Its FY24 profit stood at Rs 2,460 crore, with a CAGR of 55.9% over FY22-FY24. In its DRHP, the company noted that its loan book is highly diversified, with the top 20 customers contributing less than 0.36% of total gross loans. The average loan ticket size was around Rs 1.45 lakh as of September 30, 2024. The company had initially filed its DRHP on October 30, 2023, and received SEBI's approval at the end of May 2025. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : initial public offering (IPO) IPO Location : New Delhi, India, India First Published: June 20, 2025, 11:55 IST News business » ipo HDB Financial IPO: 10% Issue Reserved For HDFC Bank Shareholders; Check GMP, Price, Opening Date
Mint
6 hours ago
- Business
- Mint
1,495% return! HDFC Bank set to make a windfall on ₹10,000 crore stake sale in HDB Financial IPO
HDB Financial IPO: The Indian stock market is abuzz in anticipation of a mega ₹ 12,500 crore initial public offer (IPO) of HDB Financial Services, a subsidiary of HDFC Bank. HDB Financial, an upper-layer non-banking finance company (NBFC), will launch its IPO next week on June 25, wherein the promoter HDFC Bank is looking to offload a stake worth ₹ 10,000 crore. The remaining ₹ 2,500 crore will be raised via the fresh share sale. HDB Financial IPO price band declared earlier today in the range of ₹ 700-740 apiece, also promises strong returns from HDFC Bank. According to Mint's calculation, HDFC Bank stands to make a return of 1,495% considering the acquisition price of India's biggest private lender and the upper end of HDB Financial IPO's price band of ₹ 740. The red herring prospectus filed by HDB Financial Services stated the weighted average cost of acquisition by HDFC Bank in the NBFC arm as ₹ 46.4 per share. At present, HDFC Bank holds a 94.36 per cent stake in HDB Financial Services. The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years. HDB Financial IPO, which is a mix of fresh issue and offer for sale, will be the biggest listing for the Indian stock market in 2025. The public offer, which will run from June 25 to June 27, will have quotas for eligible employees and shareholders of HDFC Bank. Investors can apply for the HDB Financial IPO for a minimum lot of 20 shares and in multiples thereafter. The company plans to use the funds raised from the fresh issue towards augmenting the Tier–I Capital base and for offer-related expenses. Ahead of the kickstart of the public offer, HDB Financial shares are gaining traction in the grey market. The grey market premium (GMP) for HDB Financial Services IPO was ₹ 89 apiece. The current HDB Financial Services IPO GMP signals a listing premium of 12% for the IPO shares. The GMP, though slightly lower than ₹ 104 two days ago, has climbed from ₹ 83 apiece yesterday. The grey market premium shows market sentiment and demand towards company shares before they are officially listed on the stock market.
