HDB Financial IPO: HDFC Bank arm raises Rs 3,369 crore in anchor round from top investors including LIC, ICICI Pru, Blackrock

HDB Financial Services, the non-banking financial subsidiary of India’s largest private sector lender HDFC Bank, has raised close to Rs 3,369 crore from top domestic and foreign institutional investors ahead of its initial public offering, which opens for public bidding on Wednesday, June 25.

 

The public issue of HDB Financial will see the NBFC raise Rs 2,500 crore in a fresh issue of shares, while parent HDFC Bank is offloading a stake worth Rs 10,000 crore via an offer-for-sale. A price band of Rs 700-740 was set for the share sale. This will be the biggest IPO so far in 2025.

 

The Rs 12,500 crore public issue has in large part been necessitated by the Reserve Bank of India mandate that upper-layer NBFCs must list by September 2025.

 

Data released by stock exchanges showed the company has allocated a little over 4.55 crore equity shares at Rs 740 a share to anchor investors.

 

India's largest insurance company Life Insurance Corporation of India (LIC) has picked up close to 29.73 lakh shares of HDB Financial, which is 6.53 per cent of the anchor investor portion.

 

LIC was followed by British investment management firm Baillie Gifford, which picked up HDB Financial shares worth 3.39 per cent of the anchor portion and Norway's Government Pension Fund Global (the world's largest sovereign wealth fund) was allocated 2.97 per cent.

 

Schroder International, Blackrock, Fidelity, Abu Dhabi Investment Authority, RBC Asia Pacific, Allianz Global and Oaktree were among the major global investors who were allocated stakes in HDB Financial.

 

Several domestic asset managers also picked up a stake in the company's anchor book. These included Canara Robeco MF, UTI Mutual Fund, Axis Mutual Fund, Nippon Life India Trustee Ltd, SBI Mutual Fund and ICICI Prudential MF.

 

HDB Financial has said that it aims to utilise the net proceeds from the fresh issue of shares towards augmenting its Tier–I capital base to meet future capital requirements including onward lending.

 

The financier focuses only on retail lending and has three major segments - enterprise lending, asset finance and consumer finance. 

 

HDFC Bank currently holds around 94 per cent stake in HDB Financial, which will come down to around 75 per cent, post the IPO.

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