HDB Financial Services, the lending arm of HDFC Bank, is set to launch a ₹12,500 crore IPO, with HDFC Bank planning to offload ₹10,000 crore worth of shares through an Offer for Sale (OFS).
HDB Financial Services IPO: HDFC Bank Approves ₹12,500 Crore Share Sale, Including ₹10,000 Crore OFS
as per livemint news HDFC Bank announced on Saturday that its board has approved a share sale worth ₹12,500 crore for its subsidiary, HDB Financial Services. The IPO will include a fresh issue of ₹2,500 crore and an Offer for Sale (OFS) of ₹10,000 crore.
In a regulatory filing, the bank stated that the IPO will consist of equity shares with a face value of ₹10 each, aggregating up to ₹12,500 crore. The exact price and additional details of the IPO will be determined by the competent authority in due time.
Despite the IPO, HDB Financial Services will remain a subsidiary of HDFC Bank, adhering to all applicable regulations.
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HDFC Bank’s 94.64% Stake in HDB Financial Services Ahead of IPO
HDFC Bank holds a significant 94.64% stake in its non-banking financial arm, HDB Financial Services. As of the June quarter, HDB Financial Services has a strong financial standing with a net worth of about ₹13,300 crore.
RBI’s Listing Mandate Drives HDB Financial Services IPO
The decision to take HDB Financial Services public follows the Reserve Bank of India’s directive from October 2022. This mandate requires non-banking financial companies (NBFCs) classified in the upper layer to list on the stock exchanges, prompting HDFC Bank to move forward with the IPO plans.
