HDB Financial’s Mega ₹12,500 Crore IPO: Price Band, Dates, and Key Details You Should Know

HDB Financial Services, the NBFC backed by HDFC Bank, is gearing up for one of the biggest IPOs of the year. With a massive ₹12,500 crore offering hitting the market next week, here’s everything you need to know—from price bands to key dates and why this IPO matters.

IPO Basics: Price, Dates, and Size

• Price Band: ₹700 to ₹740 per share.
• IPO Opens: June 25, closes June 27.
• Anchor Investors: Can bid on June 24.
• Minimum Bid: 20 shares (so, at least ₹14,800 if priced at the upper end).

This IPO is a mix of fresh shares (₹2,500 crore) and an offer for sale by HDFC Bank (₹10,000 crore), which currently owns 94.3% of the company.

Why Is HDB Financial Going Public?

Two big reasons:

1. Regulatory Requirement: The RBI’s 2022 rules classify HDB as an “Upper Layer” NBFC, meaning it has to list within three years.
2. Growth Fuel: The fresh funds will boost its lending capacity, especially in retail and SME loans (think vehicle finance, loans against property).

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Valuation & Investor Split

At the top end (₹740/share), HDB Financial’s valuation hits $7.2 billion (~₹62,000 crore). Here’s how shares are allocated:

• 50% for big institutional investors.
• 15% for high-net-worth individuals.
• 35% for retail investors like you and me.

What Does HDB Financial Do?

• Runs 1,680 branches across India.
• Major loan segments: Vehicle finance, loans against property, SME lending.
• Parent company HDFC Bank (India’s largest private lender) is a solid backer.

Should You Invest?

Pros:

• Strong HDFC brand backing.
• Diversified loan book with a focus on retail/SMEs.
• Regulatory push ensures long-term stability.

Cons:

• NBFCs face stiff competition (Bajaj Finance, L&T Finance, etc.).
• Market conditions can impact listing gains.

Read More :- HDB Financial Nears SEBI Nod for $1.5 Billion IPO — India’s Biggest Shadow Bank Listing Yet

Key Dates to Watch

• Allotment: Expected by June 30.
• Listing: Tentatively set for July 2 (BSE, NSE).

Final Thoughts

This IPO is the biggest of 2024 so far, trailing only Hyundai’s ₹27,000 crore offer last year. If you’re eyeing it, check your risk appetite—NBFC stocks can be volatile, but HDB’s HDFC link adds credibility.

What’s your take? Planning to apply or waiting to see how it lists? Drop your thoughts below!

(P.S. HDFC Bank’s stock barely moved on Thursday, closing at ₹1,933.1—no major pre-IPO jitters there.)