The board of HDFC Bank's non-banking subsidiary HDB Financial Services Limited has approved the IPO plan. HDFC Bank has said in an exchange filing that new shares worth Rs 2,500 crore will be issued in the IPO of HDB Financial. Also, there will be an offer for sale from the existing shareholders in this issue.
Apart from this, there will also be shareholder quota in the IPO of HDB Financial. This IPO can come in the market by December this year or by the end of financial year 2024-25. HDB Financial Services – Provides financial services like personal loan, gold loan, business loan and auto loan.
HDFC Bank holds 94.64% stake in HDB Financial HDFC Bank holds 94.64% stake in the company. The bank is shortlisting bankers for this public issue. A report in September said that foreign banks like Morgan Stanley, Bank of America and Nomura as well as domestic firms like ICICI Securities, Axis Capital and IIFL have been shortlisted.
HDB Financial Services Limited, a non-banking subsidiary of HDFC Bank.
HDFC Bank expects a valuation of Rs 87,000 crore HDFC Bank is seeking a valuation of Rs 78,000-87,000 crore for HDB Financial Services. The bank may sell 10-15% of its stake in this IPO, which can raise Rs 7,800-8,700 crore. This will strengthen the bank's capital adequacy ratio. As of June 2024, HDFC Bank's capital adequacy ratio was 19.3%.
The Reserve Bank of India (RBI) has notified HDB Financial Services in the upper layer NBFC category. As per the rules, it is mandatory for the upper layer NBFC to be listed in the stock markets within 3 years of being notified in this category.
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