HDFC Bank to sell stake worth 10,000 cr in HDB Financial IPO; total issue size ₹12,500 crore

HDFC Bank, the country’s top private lender, on Saturday said it will sell shares worth Rs 10,000 crore through an offer for sale (OFS) in its subsidiary, HDB Financial Services Ltd, as part of the much-awaited public offering. initial (IPO) of the unit.

Parent HDFC Bank owns a 94.6% stake in HDB Financial Serviceswhich will increase to $12,500 crore through its IPO.

Pricing and other details of the proposed initial public offering will be determined in due course, the lender said.

Based on the initial sale of shares, the new sale of shares will be carried out $2,500 crore, bringing the total size of the IPO to around $12,500 crores. Earlier, HDFC Bank’s board of directors approved HDB Financial for listing. The IPO is expected to reach a valuation of approximately $7 billion to $8 billion, with a listing planned for December or the end of the current financial year, according to reports.

HDB Financial Services has hired four investment banks as advisors for its IPO: Jefferies, JM Financial, Morgan Stanley and Nomura, according to a report by Moneycontrol.

Incorporated in 2007, HDB Financial Services offers secured and unsecured loans and has over 1,680 branches across India.

HDB Financial’s listing follows new norms introduced by the country’s central bank in 2022 that required large non-banking financial companies (NBFCs) to list on stock exchanges by September 2025.

HDFC Bank reported a profit of Rs 16,175 crore during Q1FY25, down 2% from Rs 16,511.9 crore reported in the previous quarter. Net interest income increased by 2.6% in the aforementioned quarter.

Around 269 companies in India have raised more than $12.57 billion through IPOs so far this year, according to LSEG data, up from the $7.42 billion raised in all of last year. This has boosted the country’s participation in Asian capital market deals to a record level.