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HDFC Bank, India’s largest private-sector lender, recently approved ₹12,500 Crore IPO of its non-banking arm HDB Financial Services. The IPO is expected to offer ₹10,000 Crore OFS to the existing shareholders and ₹2,500 Crore fresh equity shares. The move will mark India's non-bank lenders' most significant share sale. It would surpass the previous record of ₹6,560 Crore Bajaj Housing Finance IPO that made the stellar debut with shares gaining over 136% on the listing day.’
According to the filing, "The board of directors of HDFC Bank approved an OFS of such number of equity shares of face value of ₹10 each of HDB Financial aggregating up to ₹10,000 crore, subject to applicable laws, market conditions, necessary approvals, and regulatory clearances."
The IPO is part of HDFC Bank’s compliance with the RBI directive that required prominent Non-Banking Financial Services (NBFCs) to get listed on the stock exchanges by September 2025. HDB Financial Services, which saw rapid growth since being incepted in 2007, is currently operating with around 1680 branches and offers varied financial products, including unsecured and secured loans.
HDFC Bank holds 94.6% in HDB Financial. With the IPO being launched, the bank aims to enhance the NBFC visibility in the capital markets via IPO. The approval has been received 6 years after the last IPO of HDFC Bank. It further follows the robust performance of HDB Financial Services, which reported ₹13,300 crore net worth as of June 2024.
The IPO is expected to further attract significant investor interest, considering the strong loan growth book of the company and its market position. HDB Financial Services engaged sufficient investment bankers for advisory roles in the IPO prep. The listing has been anticipated to be made by December this year, fulfilling all regulatory obligations while ensuring to position of HDB Financial Services for future growth within the competitive financial services landscape.
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