HDB Financial Services Ltd IPO

Our Company was incorporated as `HDB Financial Services Limited' under the Companies Act, 1956 pursuant to a certificate of incorporation dated June 4, 2007 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli at Ahmedabad (RoC) and commenced operations pursuant to a certificate for commencement of business dated July 31, 2007 issued by the RoC. The RBI granted a certificate of registration dated December 31, 2007 to our Company to carry on the business of a non-banking financial institution without accepting public deposits.

NBFCs have evolved in size, operations, technological sophistication and variety of financial services and products, growing from under Rs. 2 trillion AUM in Fiscal 2000 to Rs.48 trillion in Fiscal 2025. In the financial sector ecosystem, NBFCs compete with banks, micro-finance companies, digital lending platforms and informal financiers. During Fiscals 2019 to 2025, NBFC credit grew at an estimated CAGR of 13.2%. CRISIL Intelligence expects NBFC credit to grow at 15-17% between Fiscal 2025 and Fiscal 2028 primarily driven by growth in the retail, MSME and corporate segments.

We are the seventh largest leading, diversified retail-focused non-banking financial company (NBFC) in India in terms of the size of Total Gross Loan book, at Rs. 902.2 billion as at March 31, 2024, amongst our NBFC peers according to the CRISIL Report. Our Company is categorized as an Upper Layer NBFC (NBFC-UL) by the RBI pursuant to a certificate of registration (N.01.00477) dated December 31, 2007 and is registered with the IRDAI as a corporate agent (composite) pursuant to a certificate of renewal registration dated March 10, 2025 bearing registration number CA0095. The Upper Layer comprises of NBFCs that are specifically identified by the RBI as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology, as mentioned by the RBI from time to time. Further, the top ten eligible NBFCs in terms of their asset size shall always reside in the upper layer, irrespective of any other factor. For further details, see Key Regulations and Policies - 1. Key Regulations Applicable to our Company - Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 dated October 19, 2023 (NBFC Scale Based Regulations) on page 275. We offer lending products through our three business verticals: Enterprise Lending, Asset Finance and Consumer Finance. We also offer business process outsourcing services such as back-office support services, collection and sales support services to our Promoter as well as fee-based products such as distribution of insurance products primarily to our lending customers. The table below sets forth the loan book for each of our three verticals and the top three products under each of such verticals as at March 31, 2025.