“We believe this is the right moment to secure capital. We aim to avoid returning to the market within a few months or years after our public debut,” stated G Ramesh, MD & CEO of HDB Financial, during an exclusive interview with CNBC-TV18.
The IPO, scheduled to open on June 25 and close on June 27, is viewed as a significant milestone in the company’s progress—not merely an exit. “Our primary focus as an organization has always been on creating value—for our customers and stakeholders,” Ramesh noted. The offering consists of a fresh issue of ₹2,500 crore alongside an ₹10,000 crore offer for sale from parent HDFC Bank.
Incorporated 17 years ago, HDB Financial has remained profitable for nearly its entire history, experiencing only a slight loss in its inaugural year. The company currently operates in over 1,170 cities, serving a customer base of 19 million.
Ramesh emphasized that HDB functions as an independent entity, despite being a subsidiary of HDFC Bank. “We do not receive leads from our parent or any other firm. We possess our own origination engine, risk management, and technology platform,” he explained. Additionally, there are no staff transfers from the bank to the NBFC.
The company targets what it describes as “aspirational India”—a varied and expanding customer base with both business and personal credit requirements. “When we consider our customer, we ask: what does this customer need throughout their life cycle, and how can we meet that need?” Ramesh stated.
While the IPO is launched amid regulatory uncertainties regarding the RBI’s draft guidelines on overlapping functions between banks and their subsidiaries, Ramesh refrained from speculating on what the final announcement might entail. Nonetheless, he stressed that HDB’s operations are clearly defined, and the company does not partake in any arbitrage or prohibited practices.
Watch the accompanying video for the entire discussion.
