New Delhi HDFC Bank's subsidiary HDB Financial Services is going to enter the IPO market soon. It is being told that the company has submitted its documents to the market regulator SEBI to raise Rs 12,500 crore through this IPO.
According to documents filed with the Securities and Exchange Board of India (SEBI) on Wednesday, the proposed IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) worth Rs 10,000 crore by promoter HDFC Bank. Currently, HDFC Bank holds 94.36 per cent stake in HDB Financial Services, one of the non-banking financial company i.e. NBFC units of the bank.
listed on stock exchange
The company proposes to use the proceeds from the fresh issue to strengthen its Tier-1 capital base. This will support future capital requirements including additional borrowings to support business growth. The decision to list HDB Financial Services follows the Reserve Bank of India's order in October, 2022, under which upper level NBFCs are required to be listed on the stock exchange within 3 years.
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HDB Financial Services
In the same month, the board of directors of HDFC Bank had approved share sale of Rs 12,500 crore, including an offer for sale (OFS) worth Rs 10,000 crore, related to its subsidiary HDB Financial Services. Following the proposed IPO, HDB Financial Services will continue to be a subsidiary of the Bank in compliance with the provisions of applicable regulations.
HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and the world's tenth largest bank by market capitalization as of May 2024. As of April 2024, HDFC Bank has a market capitalization of $145 billion, making it the third largest company on Indian stock exchanges. It is also the sixteenth largest employer in India with over 173,000 employees after the acquisition of parent company Housing Development Finance Corporation.
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