HDB Financial Services, a subsidiary of India’s largest private lender HDFC Bank has announced plans to raise up to Rs 12,500 crore in its upcoming initial public offering ( IPO ).
HDFC Bank which owns a 94.6 per cent stake in HDB Financial, will sell shares worth Rs 10,000 crore as part of the offer. The bank indicated that the price and additional details of the IPO will end in due time. The move marks HDFC Bank’s first IPO in six years, following approval to raise Rs 25 billion by issuing shares for the IPO.
Founded in 2007, HDB Financial Services specializes in offering secured and unsecured loans and operates a network of over 1,680 branches across India. The planned listing comes in response to new regulations put in place by the Reserve Bank of India in 2022, which mandate that large non-banking financial companies (NBFCs) must be listed on stock exchanges by September 2025.
So far this year, around 269 Indian companies have raised over $12.57 billion through IPOs, surpassing the total of $7.42 billion raised in all of 2023. This surge has raised India’s share in Asian equity capital market deals at a record level.
Earlier this year, Bajaj Housing Finance made headlines with its IPO which was boosted by new listing requirements and has been one of the standout offerings in a robust Indian IPO market.
Additionally, Hyundai Motor India’s $3.3 billion IPO It was more than double oversubscribed this week, showing strong interest from institutional investors, despite pricing concerns that limited retail participation.
(With contributions from Reuters.)
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