HDB Financial Services IPO: HDFC Bank arm receives SEBI nod to raise ₹12,500 crore via fresh issue, OFS

HDB Financial Services IPO: HDB Financial Services (HDBFS) Ltd, a subsidiary unit of India’s largest private sector lender—HDFC Bank, has received the approval from capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹12,500 crore through an upcoming initial public offering (IPO). 

The parent firm HDFC Bank, which holds a 94.6 per cent in HDB Financial Services Ltd, will sell shares worth ₹10,000-crore via an offer-for-sale (OFS) as part of the IPO. This is the HDFC Bank group’s first public float in six years.

Existing shareholders will also sell some stake in the IPO via an offer for sale, the firm said in an exchange filing, without specifying details.

HDB Financial Services IPO Details

HDB Financial Services IPO will be a combination of a fresh issue and an OFS with its total issue size at ₹12,500 crore. According to HDFC Bank, the upcoming HDB Financial Services IPO will be for such number of equity shares of face value of ₹10 each, aggregating up to ₹12,500 crore comprising a fresh issue of ₹2,500 crore and the OFS aggregating up to ₹10,000 crore. 

Accordingly, the IPO will be for such number of equity shares of face value of ₹10 each of HDBFS aggregating up to ₹12,500 crore comprising of a fresh issue of such number of equity shares of face value of ₹10 each of HDBFS aggregating up to ₹2,500 crore and an OFS of such number of equity shares of face value of ₹10 each of HDBFS aggregating up to ₹10,000 crore,” said HDFC Bank in a regulatory filing to the stock exchanges

“The price and other details of the proposed IPO will be determined in due course by the competent body. Please note that post the proposed IPO, HDBFS would continue to be a subsidiary of the Bank, in compliance with the provisions of the applicable regulations,” added HDFC Bank.

HDB Financial Services Details

Incorporated in 2007, HDB Financial Services provides secured and unsecured loans and has more than 1,680 branches across India. HDB Financial Services closed the June quarter with a net worth of about R 13,300 crore. The listing of the NBFC follows the central bank’s new norms. The decision to list HDB Financial Services follows the Reserve Bank of India (RBI)’s mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges