Another big IPO The way to come has been cleared. The board of directors of HDFC Bank, the largest private sector bank, has approved its subsidiary company HDB Financial Services to launch an IPO. Under this, share sale of Rs 12,500 crore including offer for sale (OFS) of Rs 10,000 crore related to HDB has been approved. The initial public offering (IPO) will be for such number of equity shares of face value of Rs 10 each of HDB Financial Services, aggregating to Rs 12,500 crore, HDFC Bank said in a filing to the stock exchanges on Saturday, including Rs 2,500 crore. Fresh issue of Rs 10,000 crore and OFS up to Rs 10,000 crore.
Price band has not been decided
The price and other details of the proposed IPO will be determined by the competent body in due course. Following the proposed IPO, HDB Financial Services will remain a subsidiary of the bank. HDFC Bank holds 94.64 per cent stake in non-banking financial company (NBFC) HDB Financial Services.
About HDB Financial Services
HDB Financial Services was established in 2007. This company provides secured and unsecured loans. It has more than 1,680 branches across India. HDB Financial Services reported net worth of around ₹13,300 crore in the June quarter. The listing of NBFCs is happening due to the new norms of RBI. The decision to list HDB Financial Services follows the Reserve Bank of India (RBI) order in October 2022, under which large NBFCs are required to be listed on stock exchanges. The NBFC reported 17% year-on-year growth in its loan book to Rs 66,000 crore in FY23. The growth was driven by strong demand for personal loans, vehicle loans and small business financing. Meanwhile, the company’s net profit stood at Rs 1,740 crore in FY23.
