HDB Financial Services IPO Details: Launch Date, Share Price, Size & Review

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Business Profile of the HDB Financial Services Limited

HDB Financial Services is a leading diversified retail-focused NBFC in India, offering a wide portfolio of lending products. The company caters to underserved and under banked customers in low to middle-income households with minimal or no credit history. The company with its PAN India network of branches offers business process outsourcing services and fee-based products.

Its loan book has weathered multiple credit cycles in India, and its tech-enabled operating processes have contributed to strong asset quality and low credit costs. The company has also integrated digital capabilities, such as sourcing, credit assessment, risk management, and collections, to streamline operations. With a strong promoter, the company has a strong credit rating of AAA stable, allowing it to fund operations at competitive rates and tenors.

HDB Financial Services Limited IPO Objective

As per the draft red hearing prospects, the IPO issue consists only of offer for sale.

  • The OFS consists of up to XXXX Equity Shares aggregating up to Rs. 10, 000 crore. Nothing from those proceeds of OFS will be allotted to company.
  • HDB Financial Services IPO offer only has fresh issue of Rs. 2, 500 crore. As per DRHP document, the company aims to utilize IPO proceedings towards augmenting its capital base for future capital requirement.

Issue Price & Size: HDB Financial Services Limited IPO

The issue price of HDB Financial Services Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue of Rs. 2, 500 crores as well as offer for sale of Rs. 10, 000 crores.

Launch Date of HDB Financial Services Limited IPO

The IPO opening date of HDB Financial Services hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.

HDB Financial Services Limited Promoters & Shareholding

As of date, there is only one promoters of the company i.e. HDFC Bank. The promoter i.e. HDFC Bank in aggregate holds 94.36% of the paid-up share capital of company.

Should You Subscribe to HDB Financial Services Limited IPO or Not

While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.

Competitive Strengths of HDB Financial Services Limited:

Fastest-growing customer franchise

HDB Financial is India’s largest and fastest-growing customer franchise. The company’s has served over 1 crores happy customers and their customer base primarily consists of middle-class salaried and self-employed individuals, small business owners, and entrepreneurs. The company has sustained strong loan book growth over 17 years, supported by long-term strategic initiatives and strong collections. As of September 30, 2024, the average ticket sizes in Enterprise Lending, Asset Finance, and Consumer Finance were approximately ₹0.57 million, ₹0.84 million, and ₹0.04 million.

Large, diversified and seasoned product portfolio

The company caters to a diverse client’s base with its diverse lending portfolio with clients ranging from enterprise, asset finance, and consumer finance. The company offers business process outsourcing and fee-based products, such as insurance distribution. Their loan book is well diversified, with no single product accounting for more than 25% of its total gross loan book. The company’s diversified product portfolio allows them to cross seel their products using various AI technology and through customer engagement.

Pan India distribution network

The company has a strong phygital sourcing network speed across nation, consisting of internal, external, and digital distribution networks. Because of its pan India presence, no region accounts for more than 35% of total gross loans. The company has customized sourcing strategies for each business vertical, including a branch-led distribution strategy, a growing omni-channel presence through partnerships with OEMs, dealers, distribution points, retail stores, and direct selling agents. The company also has a digital presence through partnerships with fintechs, a website, and a user-friendly application. The company has 1,772 physical branches across 31 states and union territories, with over 80% located outside India’s 20 largest cities and 70% in Tier 4+ towns.

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