HDB Financial Sets IPO Price Band at Rs 700–740; Subscription Opens on June 25

The non-banking financial arm of HDFC Bank, HDB Financial Services, has set the price band for its upcoming IPO at ₹700 -₹740 per equity share, each having a face value of ₹10. The subscription window for the public issue will open on Wednesday, June 25, and close on Friday, June 27. Anchor investors will be allocated the shares on Tuesday, June 24.

The minimum bid lot is fixed at 20 equity shares, and bids can be placed in multiples of 20 thereafter. In terms of allocation, not more than 50% of the offer is reserved for Qualified Institutional Buyers, at least 15% for Non-Institutional Investors, and at least 35% is earmarked for retail investors. The shares are expected to be listed on the BSE and NSE on Wednesday, July 2.

The issue comprises a fresh issue of shares worth ₹2,500 crore and an offer for sale of shares ₹10,000 crore by HDFC Bank, which currently holds 94.6% stake in the NBFC. This would mark the first public issue from the HDFC Bank group in six years.

The net proceeds from the fresh issue of shares will be utilised in augmentation of its Tier – I capital base to meet the NBFC’s future capital requirements including onward lending. The move to list its NBFC arm aligns with an RBI’s directive dated October 2022, which mandates upper-layer NBFCs to list on the stock exchanges within three years.

According to the data available in the draft IPO papers, the company’s consolidated net profit stood at Rs 1,172.7 crore for the six months ended September 2024, slightly higher than the Rs 1,167.7 crore profit recorded in the year-ago period. Its total revenue for the period rose to Rs 7,890.6 crore from Rs 6,902.5 crore recorded in the year-ago period.

The company's competitors such as Bajaj Finance has a price-to-earnings multiple (P/E) of 34.3, Sundaram Finance has a P/E of 28.1, L&T Finance has a P/E of 17.9and Shriram Finance has a P/E of 13.