HBD Financial Services, a unit of the country’s largest private lender HDFC Bank, has approved raising Rs 2,500 crore through a fresh issue of shares in its initial public offering (IPO), the lender said in an exchange filing on Friday.
The IPO has been anticipated for months and is expected to hit the market by December or by the end of the fiscal 2025. HDFC Bank, which holds a 94.64 per cent stake in HDB Financial Services, has been in the process of shortlisting bankers for the issue.
In the statement the HDFC Bank said, the Board of Directors of the company at its meeting held today has inter-alia, subject to the approval of the shareholders, considered and approved the IPO of the equity shares of face value Rs 10 each comprising of a fresh issue of equity shares aggregating up to Rs 2,500 crore an offer for sale (OFS) of equity shares by existing and eligible shareholders of the company who may offer to tender their equity shares which is subjected to the approval of the shareholders of the company, market conditions, receipt of applicable approvals, regulatory clearances and other considerations.
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Morgan Stanley, Bank of America, Nomura, Axis Capital, IIFL and ICICI Securities have been shortlisted, according to a Moneycontrol report last month.
The decision to list HDB Financial Services comes after the Reserve Bank of India’s guideline in October 2022, requiring non-banking financial companies (NBFC) in the “upper layer” to list on the stock exchanges. The IPO approval follows the bumper listing of Bajaj Housing Finance, which saw its market cap cross Rs 1.4 lakh crore this week.
HDB Financial Services is a leading NBFC that offers personal loans, business loans and vehicle loans among other financial products. Incorporated in 2007, the company’s line of business includes lending and BPO services.
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