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• LIC invested Rs 220 crore in HDB Financial Services’ Rs 12,500 crore IPO, becoming the largest anchor investor with a 6.53% share.
• The IPO, open from June 25–27, is India’s biggest ever by an NBFC, with a price band of Rs 700- Rs 740 per share.
• HDB secured Rs 3,369 crore from 141 anchor investors; LIC reported a 38% rise in Q4 FY25 profit, reflecting robust financial health.

Life Insurance Corporation of India (LIC), the country’s largest insurer and biggest institutional investor, has emerged as the largest anchor investor in the highly anticipated initial public offering (IPO) of HDB Financial Services, a subsidiary of HDFC Bank. LIC's investment in the anchor book is valued at around Rs 220 crore, representing 6.53 percent of the total anchor allocation.

HDB Financial Services, a leading non-banking financial company (NBFC), raised Rs 3,369 crore from 141 anchor investors ahead of its public issue. Shares were allocated at Rs 740 each, the upper end of the price band. LIC's participation marks a rare investment in a private sector IPO, as the insurance giant typically backs public sector offerings and disinvestment programs.

Among other notable institutional investors participating in the anchor book are ICICI Prudential Banking and Financial Services Fund, SBI Flexi Cap Fund, Goldman Sachs India Equity Portfolio, Baillie Gifford Pacific Fund, Government Pension Fund Global, Aditya Birla Sun Life Equity Savings Fund, Fidelity Emerging Asia Fund, Kotak ELSS Tax Saver Fund, and several others.

Anchor investors in IPOs are institutional entities that subscribe to shares at a fixed price before the issue opens to retail and other investors. They are required to make a minimum investment of Rs 10 crore, lending credibility and stability to the issue.

HDB Financial Services will open its Rs 12,500 crore IPO to public subscription from June 25 to 27, making it India’s largest-ever IPO by an NBFC. The price band has been set at Rs 700-Rs 740 per share. According to earlier reports, the company is targeting a post-money valuation of around $7.2 billion (Rs 62,000 crore) at the top end of the price band.

The IPO is being managed by a consortium of 12 investment banks, including JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal, and UBS. Legal advisory is being provided by Cyril Amarchand Mangaldas.

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LIC's participation in this high-profile private sector IPO adds further credibility to the offering. In recent months, LIC has also participated in major deals like the Rs 27,870 crore Hyundai Motor India IPO (outside anchor book) and Brookfield REIT’s QIP.

Meanwhile, LIC has reported strong financials, with a 38 percent jump in net profit for Q4 FY25 to Rs 19,013 crore, up from Rs 13,763 crore in the same period last year. The insurer recently appointed Ramakrishnan Chander as Chief Investment Officer, and named Ratnakar Patnaik and Dinesh Pant as new managing directors, signaling a refreshed leadership approach to investment strategies.