HDFC Bank's NBFC arm HDB Financial Services files papers for Rs 12,500 crore IPO
Mumbai/IBNS: HDFC Bank announced on Thursday (Oct. 31) that its non-banking financial arm HDB Financial Services filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a potential IPO of up to Rs 12,500 crore (approximately $1.49 billion).
The DRHP, submitted last Wednesday, signals that the IPO is contingent on required regulatory approvals and favorable market conditions.
This offering includes a fresh issue of shares worth Rs 2,500 crore, as well as an offer for sale (OFS) of shares totaling Rs 1,000 crore from current shareholders.
HDFC Bank, which owns a 94.6 percent stake in HDB Financial, plans to sell up to Rs 10,000 crore of its shares through the OFS route.
The IPO proceeds will be directed toward capital needs, including onward lending, according to HDB Financial.
Last month, HDFC Bank — India's largest private sector lender — approved the unit's IPO, marking the first public listing for the group in six years, aligning with regulatory mandates for large non-banking financial companies (NBFCs) to list by September 2025.
Following the IPO, HDB Financial Services will remain a subsidiary of HDFC Bank, maintaining compliance with applicable regulations.
Four investment banks—Jefferies, JM Financial, Morgan Stanley, and Nomura—are advising HDB on the IPO.
In 2024, fundraising through IPOs reached record levels, surpassing the previous high set in 2021, with two months still left in the year.
Total funds raised have already exceeded Rs 1.22 lakh crore, surpassing the Rs 1.18 lakh crore record of 2021, with around 70 percent of these funds generated since August.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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