Jio IPO Expected to Surpass $6 Billion...
05 Nov 2024
HDB Financial Services, a non-banking financial subsidiary of HDFC Bank, has filed draft papers with SEBI to raise ₹12,500 crore via an initial public offering (IPO).
This proposed IPO will include a fresh issue of shares worth ₹2,500 crore and an Offer-for-Sale (OFS) of ₹10,000 crore by the parent company, HDFC Bank, as per the draft red herring prospectus (DRHP) submitted on October 31. HDFC Bank currently holds a 94.36% stake in HDB Financial Services.
The IPO aims to bolster HDB Financial’s Tier-I capital base, which will support future growth initiatives, including lending expansion. The decision aligns with the Reserve Bank of India’s 2022 mandate, which requires large NBFCs to list on exchanges within three years.
HDFC Bank’s board previously approved this ₹12,500 crore share sale plan, including the ₹10,000 crore OFS of its stake in HDB Financial. Post-IPO, HDB Financial will remain a subsidiary of HDFC Bank, complying with relevant regulatory requirements.
At the close of the June quarter, HDB Financial Services reported a net worth of around ₹13,300 crore. A team of 12 lead managers, including JM Financial, BNP Paribas, and Goldman Sachs India, will manage the offering.
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