Hi Wealthgainer Readers, The HDB Financial Services IPO is one of the most anticipated offerings in the financial sector. As a key player under the HDFC Bank umbrella, HDB Financial Services has garnered significant attention due to its strong performance and market position.
HDB Financial Services IPO dates have yet to be announced. The IPO will follow a book-building process and aims to raise approximately ₹12,500 crores. This includes a fresh issue of ₹2,500 crores and an offer for sale (OFS) of up to ₹10,000 crores, with each share having a face value of ₹10. As per the HDB Financial Draft Red Herring Prospectus (DRHP), 35% of the shares are reserved for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI). The IPO will be listed on both the NSE and BSE.
This blog post provides comprehensive details about the HDB Financial IPO, making it easier for investors to make informed decisions.
HDB Financial Services IPO Details
| Particulars | Details |
|---|---|
| IPO Date | To be announced |
| Listing Date | To be announced |
| Face Value | To be announced |
| Price Band | To be announced |
| Lot Size | To be announced |
| Total Issue Size | To be announced |
| Fresh Issue | To be announced |
| Offer For Sale | To be announced |
| Employee Discount | To be announced |
| Issue Type | To be announced |
| Listing At | To be announced |
| Shareholding Pre-Issue | To be announced |
| Shareholding Post-Issue | To be announced |
HDB Financial Services IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Retail Investors | To be announced |
| Anchor Investors | To be announced |
| QIB | To be announced |
| NII (> ₹10L) | To be announced |
| NII (< ₹10L) | To be announced |
| Retail | To be announced |
| Employees | To be announced |
| Total Shares | To be announced |
HDB Financial Services IPO Timeline (Tentative Schedule)
The tentative timeline for the IPO is as follows:
| Event | Date |
|---|---|
| IPO Open Date | To be announced |
| IPO Close Date | To be announced |
| Basis of Allotment | To be announced |
| Initiation of Refunds | To be announced |
| Credit of Shares to Demat | To be announced |
| Listing Date | To be announced |
| Cut-off Time for UPI Mandate Confirmation | To be announced |
HDB Financial Services IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | To be announced | To be announced | To be announced |
| Retail (Max) | To be announced | To be announced | To be announced |
| S-HNI (Min) | To be announced | To be announced | To be announced |
| S-HNI (Max) | To be announced | To be announced | To be announced |
| B-HNI (Min) | To be announced | To be announced | To be announced |
HDB Financial Services Promoter Holdings
| Particulars | Shareholding (%) |
|---|---|
| Shareholding Pre-Issue | To be announced |
| Shareholding Post-Issue | To be announced |
HDB Financial Services IPO GMP
| Date | IPO GMP | GMP Trend | Kostak | Subject to Sauda |
|---|---|---|---|---|
| 7 January | ₹- | ₹- | ₹- | ₹- |
| 6 January | ₹- | ₹- | ₹- | ₹- |
| 5 January | ₹- | ₹- | ₹- | ₹- |
| 4 January | ₹- | ₹- | ₹- | ₹- |
About HDB Financial Services
Founded on June 4, 2007, HDB Financial Services operates as a Non-Banking Financial Company (NBFC). It is a subsidiary of HDFC Bank, offering diverse financial products and services. The company has established itself as a leader in loan origination, underwriting, and other financial solutions tailored to retail and SME customers.
- HDB Financial Services is the non-banking finance arm of HDFC Bank, a leading financial institution in India.
- The IPO is expected to raise around ₹12,500 crore, with HDFC Bank diluting a 10% stake.
- The company is collaborating with major investment banks such as Bank of America Securities, Morgan Stanley, and Nomura to finalize advisers for the IPO.
Industry Outlook
- Economic Growth: India’s strong investment climate, rising consumption, and easing commodity prices set a favorable stage for financial services.
- NBFC Sector: NBFCs are pivotal in driving financial inclusion and enterprise growth, with enhanced governance expected to improve industry operations.
Company Overview
Key Information
- Founded: June 4, 2007, in Ahmedabad.
- Category: Non-deposit taking NBFC under Section 45-1A of the RBI Act, 1934.
- Parent Company: HDFC Bank (94.5% ownership).
- Credit Rating: AAA from CARE and CRISIL for long-term loans.
Business Model
HDB Financial Services provides:
- Secured Loans: Vehicle loans, loans against property.
- Unsecured Loans: Personal loans, consumer durable loans.
- Fee-based Products: Insurance and other financial products.
- BPO Services: Supporting financial and customer operations.
IPO Objectives
The company has not disclosed specific objectives, but the IPO is expected to:
- Comply with RBI regulations for upper-layer NBFCs.
- Raise funds for expansion and strengthening of the balance sheet.
HDB Financial Services Financial Information
| Particulars | FY23 (₹ crore) | FY22 (₹ crore) |
|---|---|---|
| Revenue | 12,402.88 | 11,306.29 |
| Profit After Tax (PAT) | 1,959.35 | 1,011.40 |
| Tax Expenses | 668.05 | 336.16 |
| Assets Under Management | 70,084 | 61,444 |
| Total Borrowings | 54,865 | 48,973 |
| Earnings Per Share (EPS) | 24.78 | 12.81 |
Strengths
- Strong Parentage: Backed by HDFC Bank, providing access to low-cost funding.
- Leadership Expertise: Senior professionals with deep industry knowledge.
- Robust Risk Management: Regular reviews to maintain asset quality.
- Banking Relationships: Strong ties with financial institutions ensure operational efficiency.
Risks
- Asset Quality: Ineffective risk management could degrade asset quality.
- Funding Disruptions: Dependence on funding sources may affect liquidity.
- High Default Rates: SME and individual borrowers pose a risk of default.
- Regulatory Changes: Compliance with RBI norms could impact operations.
How to Check HDB Financial Services IPO Allotment Status
Steps to Check Allotment Status –
- Step 1 – Visit the link.
- Step 2 – From the list of available IPOs, select ‘HDB Financial Services IPO’.
- Step 3 – You may be required to select one of the four modes: application number, DP /Client ID, PAN, or Account number/IFSC.
- Step 4 – Click on “Submit” to view your allotment status.
HDB Financial Services IPO FAQs
What is HDB Financial Services IPO?
It is a book-built IPO by HDB Financial Services to raise funds and comply with RBI listing norms.
When will the IPO open for subscription?
The dates are yet to be announced.
What is the minimum lot size for retail investors?
Details are awaited.
What are the expected listing gains?
Listing gains will depend on market demand and pricing but are expected to be moderate due to valuation concerns.
Conclusion
The HDB Financial Services IPO represents a milestone for the NBFC sector, combining strong parentage, robust financials, and a promising market outlook. However, investors should carefully assess the valuation and risks before subscribing.