HDFC Bank In Focus: Subsidiary HDB Financial Sets Price Band For IPO, Stock To Go Ex-Dividend Next Week; Buy?

India's largest private sector bank is HDFC Bank, which has a market valuation of about Rs 14.8 lakh crore. Following the announcement that HDB Financial Services Limited (HDBFS), a subsidiary of HDFC Bank Limited, has set an IPO price band on June 19, 2025, and that HDFC Bank would trade ex-dividend next week for its upcoming payout of Rs 22, the shares of HDFC Bank will be the focus of attention today.

HDB Financial Services IPO

"We wish to inform you that the price band for the Initial Public Offering ("IPO") of equity shares of HDBFS has been fixed at Rs. 700 to Rs. 740 per equity share of face value of Rs. 10 each. Consequently, the minimum bid lot for the IPO has been fixed at 20 equity shares and applications may be made in multiples of 20 thereafter," HDFC Bank said in a regulatory filing on Thursday.

At its meeting, the Bank's Board of Directors approved the transfer of the necessary number of HDBFS equity shares, each with a face value of Rs. 10, that the bank held as part of the Offer for Sale segment (OFS) in connection with the IPO.

A fresh issue of equity shares up to 25,000.0 million and an offer for sale of equity shares up to 100,000.0 million by HDFC Bank Limited are part of the initial public offering (IPO) that HDB Financial Services Limited has filed with the Registrar of Companies on June 19, 2025.

The offer includes a reservation for subscription by the company's eligible employees and eligible HDFC Bank shareholders as stated in the RHP. The offer or bid will go live on Wednesday, June 25, 2025, and end on Friday, June 27, 2025. On Tuesday, June 24, 2025, the anchor investor bidding date will take place.

HDFC Bank Upcoming Dividend

"The Board of Directors of the Bank at its meeting held on April 19, 2025, recommended a dividend of Rs. 22.00 per equity share of the Bank of face value of Re. 1/- each, for the financial year ended March 31, 2025, subject to the approval of the shareholders of the Bank at its ensuing Annual General Meeting. The dividend, as recommended by the Board and if approved at the ensuing Annual General Meeting, will be paid to shareholders holding equity shares of the Bank, either in electronic or in physical form as on the record date, i.e. June 27, 2025," HDFC Bank said in a stock exchange filing.

HDFC Bank Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "HDFCBANK is currently trading at ₹1,935 and is moving in a sideways range between ₹1,900 and ₹1,975. Price action remains choppy within this band, and volatility is expected to continue unless there is a clear breakout on either side. A close above ₹1,950, followed by sustained buying, could lead the stock towards ₹2,025 and ₹2,050 levels in the short to medium term."

"On the downside, ₹1,900 is a crucial support level. A breakdown below this level could trigger a further correction toward ₹1,880 and ₹1,850. Until then, the current range-bound structure suggests a wait-and-watch approach for fresh entries, especially for directional traders," the analyst added.

"Momentum indicators also reflect indecision-RSI at 51.27 indicates a neutral trend, while the Stochastic RSI has given a negative crossover from the oversold zone, hinting at possible near-term weakness. Overall, there is no clear directional view, and those holding for higher targets should maintain a strict stop-loss at ₹1,900," Mandar Bhojane further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.