HDB Financial Services Secures ₹3,369 Crore from Anchor Investors, LIC at the Forefront

India’s largest NBFC IPO, with price expectations ranging between ₹700 and ₹740 per share, has established investor confidence ahead of its launch between June 25 and 27, with an investment of ₹3,369 from anchor investors.

According to Ditto, HDFC Bank currently owns 94% of HDB Financial Services. However, after the IPO listing, HDFC will only own 74% of its shares. Out of the remaining 34%, Life Insurance Corporation of India will account for 6.53%, which is worth ₹220 crores.

But how is HDB Financial Services able to attract 141 anchor investors within such a short span?

What is Hdb Financial Services, And How Is It Related To Hdfc Bank?

Indians were eager about the concept of credit cards and consumer loans in 2007. HDFC Bank identified a market gap and jumped right in, landing on a gold mine. HDFC Bank was well aware that establishing an NBFC, namely HDB Financial Services, would enable it to escape the regulatory limits of traditional banking.

Banks were hesitant to lend to consumers with thin credit files, small business owners, and those seeking quick cash for weddings or emergencies. This is where HDFC Bank played its cards well. Not only did HDFC Bank maintain a clean record, but it also supported HDB Financial Services in scaling its loan book to over 90,000 crore.

HDB Financial Services will release an IPO of ₹12,500 between June 25 and 27. However, ₹10,000 crore is technically a payday for HDFC Bank, which is selling part of its stake through an Offer for Sale. The remaining ₹2,500 crore will be used to meet HDB’s capital requirements and fuel lending growth.

Why is HDB Financial Services’ IPO a Good Investment Opportunity for you?

One would know that Muthoot Finance offers gold loans, while Shriram Finance primarily deals in used vehicle loans. HDB Financial Services deals in all the categories mentioned below:

1. Personal Loans
2. Salaried Personal Loans
3. Business Loan
4. Micro Lending Loan
5. Auto Loan
6. 2-Wheeler Loan
7. Construction Equipment Loan
8. Gold Loan
9. Tractor Loan
10. Lifestyle Product Loan and 15 other loan categories.

So, HDB has now mastered the skill of diversification.

Refer to this table to understand how HDB Financial Services has maintained an NPA standard of around 2.26% now.

So, if one category underperforms, HDB Financial Services can rely on profits from another category.

Note: Over 80% of its 1700-plus branches of HDB Financial Services are now established in semi-urban or rural areas. Although lending to consumers from rural areas is a little risky, HDB has focused on cautious underwriting to maintain low default rates.

These are some of the reasons why the loan books of HDB Bank have grown from ₹ 70,000 crore in FY2023 to ₹ 1,00,000 Crore in FY2025, with a 23% CAGR.

How many Anchor Investors have invested in the HDB Financial Services IPO?

Anchor investors are allotted positions in an IPO (Initial Public Offering) before it’s opened for public subscription. The primary objective of this practice is to stabilise the IPO and raise investors’ confidence. Anchor investment is done 1 day to opening the IPO for the general public.

As HDB Financial Services’ IPO opened for Qualified Investment Buyers or anchor investors, a total of 141 anchor investors invested ₹3,369 crore. This is good news for HDB financial services, as the general public would see it as a lucrative avenue for investment.

Note: On June 5, the insurance behemoth announced that its current executive director, Ramakrishnan Chander, has taken charge as Chief Investment Officer. Earlier, on May 15, it announced the appointment of Ratnakar Patnaik and Dinesh Pant as its managing directors (MDs).

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