HDB Financial Services Secures Rs 3,369 Crore from Anchor Investors Before IPO Launch

HDB Financial Services, a subsidiary of HDFC Bank, has successfully raised Rs 3,369 crore from anchor investors. This comes just before its initial public offering (IPO) opens for public subscription. The IPO will be available from June 25 to June 27, with a price band set at Rs 700-740 per share. At the top end of this range, the company is valued at nearly Rs 61,400 crore.

Anchor Investors and Share Allocation

The anchor round saw participation from major investors like Life Insurance Corporation of India, ICICI Prudential Mutual Fund, SBI Mutual Fund, and Nippon India Mutual Fund. Other notable participants include BlackRock, Royal Bank of Canada, Allianz Global Investors, and Morgan Stanley. HDB Financial Services allocated over 4.55 crore equity shares to 141 entities at Rs 740 per share.

The IPO consists of a fresh issue of equity shares worth Rs 2,500 crore and an Offer For Sale (OFS) of Rs 10,000 crore by HDFC Bank. Currently, HDFC Bank holds a 94.36% stake in HDB Financial Services. The proceeds from the fresh issue will be used to strengthen the company's Tier-I capital base to support future growth.

Regulatory Compliance and Future Plans

The decision to list HDB Financial Services follows an RBI mandate from October 2022. This directive requires non-banking financial companies (NBFCs) in the upper layer to list on stock exchanges within three years. After the IPO, HDB Financial Services will remain a subsidiary of HDFC Bank in line with regulatory requirements.

The IPO is managed by a consortium of book-running lead managers including JM Financial, BNP Paribas, BofA Securities India, and Goldman Sachs India Securities. Other managers include HSBC Securities and Capital Markets India Pvt Ltd and IIFL Securities. The company's shares are expected to be listed on the BSE and NSE on July 2.

Market Context and Peer Comparisons

This IPO is the second largest in the past three years after Hyundai's Rs 27,000-crore issue. Other significant upcoming listings include Tata Capital and Indian startups like PhonePe and Lenskart. As of March 2025, HDB Financial Services manages assets worth over Rs 1 lakh crore.

Investors can bid for shares in lots of 20 and multiples thereof. Ramesh G., managing director and CEO of HDB Financial Services, highlighted that since its inception in 2008, the company has independently developed its business model. "The company has built the business, including enterprise loans, consumer loans, and asset finance from ground-up since 2008," he stated.

The listing aims to bolster HDB Financial's capital base for future lending needs. This move aligns with its strategy to support business growth while adhering to regulatory mandates set by the Reserve Bank of India.

With inputs from PTI