HDB Financial Services shares are set to list on the BSE and NSE on Tuesday, July 2, following a strong response to its initial public offering, which was subscribed 16.69 times.

The IPO of HDB Financial, a subsidiary of HDFC Bank, was open for subscription between June 25 and June 27 and saw full subscription by the second day, with strong interest from institutional investors.

The non-banking financial company (NBFC) operates with a diversified loan portfolio, including enterprise, consumer and asset financing. It has a wide presence across India with 1,771 branches and more than 60,000 employees.

The company has shown steady asset quality, with gross non-performing assets (NPAs) averaging around 2.3 per cent between FY23 and FY25. During the same period, the company’s assets under management (AUM) and profit after tax (PAT) grew at a CAGR of 24 per cent and 5.4 per cent, respectively.

NBFC’s strategic positioning, supported by its parent HDFC Bank, offers significant room for growth, especially in underpenetrated retail and SME credit markets.

At the upper price band, the company’s FY25 price-to-book (P/B) ratio stands at 3.7x, with a post-issue market capitalization of ?6,13,879.4 million. Backed by the strong parentage of HDFC Bank, India’s second-largest private bank by total assets, the company offers a well-diversified product portfolio with robust granularity, scale, and sound lending quality.

HDFC Bank currently holds a 94.36 percent stake in HDB Financial Services. The IPO is the second largest in the last three years, after Hyundai Motor India’s Rs 27,000-crore offering.

The non-banking financial company (NBFC) operates with a diversified loan portfolio, including enterprise, consumer and asset financing. It has a wide presence across India with 1,771 branches and more than 60,000 employees.