New Delhi: HDFC Bank, India’s leading private lender, announced on Saturday, October 19, that it plans to sell equity shares worth Rs 10,000 crore through an offer for sale (OFS) in its subsidiary, HDB Financial Services Limited. This move is part of the much-anticipated initial public offering (IPO) of HDB Financial.
HDFC Bank currently holds a 94.6 per cent stake in HDB Financial Services, which is expected to raise up to Rs 12,500 crore from its IPO. While the specific price and details of the IPO are yet to be finalized, the initial share sale will include a fresh equity sale of Rs 2,500 crore, bringing the total size of the IPO to around Rs 12,500 crore. The bank's board previously approved the plan to take HDB Financial public.
Reports suggest that the IPO could be valued at approximately $7–8 billion, with a potential listing target set for December or by the end of the current financial year. HDB Financial Services has enlisted four investment banks—Jefferies, JM Financial, Morgan Stanley, and Nomura—to assist with the IPO.
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Founded in 2007, HDB Financial Services offers both secured and unsecured loans, operating over 1,680 branches across India. The company's listing comes after new regulations introduced by the Reserve Bank of India in 2022, which require large non-banking financial companies (NBFCs) to be listed on stock exchanges by September 2025.
In its latest financial results, HDFC Bank reported a profit of Rs 16,175 crore for the first quarter of FY25, which represents a 2 per cent decrease compared to the previous quarter’s profit of Rs 16,511.9 crore. However, the bank's net interest income saw a 2.6 per cent increase during this period.
This year has been significant for IPOs in India, with approximately 269 companies raising over $12.57 billion so far, surpassing the total of $7.42 billion raised in all of last year.
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