HDFC Bank's NBFC arm files for ₹12,500 crore IPO

HDFC Bank's NBFC arm files for ₹12,500 crore IPO
31 Oct 2024

HDB Financial Services, the non-banking financial company (NBFC) subsidiary of HDFC Bank, has filed for an initial public offering (IPO) of up to ₹12,500 crore ($1.49 billion).

The development comes in line with an announcement from its parent company earlier this month.

HDFC Bank, which holds a massive 94.6% stake in HDB Financial Services, will offload shares worth up to ₹10,000 crore in the IPO.

HDB Financial's plan for fresh shares and capital requirements
Capital strategy

Apart from HDFC Bank's share sale, HDB Financial Services plans to issue fresh shares worth up to ₹2,500 crore.

The IPO's draft papers were filed late on Wednesday.

The company has said it will use its share of the IPO proceeds to meet capital requirements, including onward lending activities.

This strategy is detailed in the documents filed for the public offering.

HDFC Bank's 1st public float in 6 years
Market debut

Notably, HDB Financial Services's IPO will be HDFC Bank's first public float in six years.

The move comes as part of the financial regulator's deadline for "upper layer" NBFCs to be listed by September 2025, depending on their size, activity, and perceived risk levels.

The upcoming IPO is also in line with India's booming market, where about 270 companies have raised over $12.57 billion in IPOs this year alone.

HDB Financial's nationwide presence and IPO management
Company profile

Founded in 2007, HDB Financial Services provides secured and unsecured loans through its wide network of more than 1,680 branches across India.

The company has hired Jefferies, Goldman Sachs, and BofA Securities as the book running lead managers for its upcoming IPO.

They will be instrumental in ensuring the successful execution of this major public offering.