HDB Financial Services gears for Rs.12,500 Crore IPO; Filed Draft Papers
HDB Financial Services, HDFC Bank’s non-banking finance company, has filed for a major IPO worth up to Rs.12,500 crore (about $1.49 billion USD). This IPO plan aligns with HDFC Bank’s recent announcement to take its lending arm public, in line with regulatory requirements.
Under this IPO structure, HDFC Bank, which owns 94.6% of HDB Financial, will sell shares worth up to Rs.10,000 crore. Meanwhile, HDB Financial will issue fresh shares valued at up to Rs.2,500 crore. HDB Financial plans to use its part of the IPO funds to meet its capital needs, which will support its lending operations and expansion.
This IPO comes as the Reserve Bank of India now requires large non-banking financial companies (NBFCs) with high activity levels and risk profiles to go public by September 2025. HDFC Bank gave its go-ahead for HDB Financial’s IPO last month to meet this requirement. Earlier in the year, Bajaj Housing Finance also went public to meet these new listing rules, and it became one of the most successful IPOs in India’s strong market this year.
Founded in 2007, HDB Financial Services offers a range of loans, both secured and unsecured, and has built a network of over 1,680 branches across India. Given its presence in the lending sector, this IPO is expected to catch the attention of many investors.
India’s IPO market has been thriving this year. According to data, over 270 companies have raised more than $12.57 billion in 2023, surpassing the $7.42 billion raised last year.
International financial firms, including Jefferies, Goldman Sachs, and BofA Securities, are among the main managers handling this IPO. HDB Financial’s upcoming public listing could be one of the biggest of recent years, highlighting HDFC Bank’s growth plans and the strong demand for financial sector investments in India.
