HDFC Bank to pare stake worth ₹10,000 Crore in HDB Financial IPO

21 Oct 2024 , 09:32 AM

On Saturday, October 19, HDFC Bank, the country’s biggest private lender, announced the sale of equity shares worth ₹10,000 Crore through an offer for sale (OFS) in its subsidiary, HDB Financial Services Ltd, as part of the unit’s much-anticipated IPO.

HDFC Bank owns 94.6% of HDB Financial Services, which plans to raise up to 12,500 Crore through an initial public offering (IPO). The IPO price and other specifics would be established later, according to the lender.

The initial share offer would include a fresh equity transaction of ₹2,500 Crore, totalling approximately ₹12,500 Crore. Previously, HDFC Bank’s board approved taking HDB Financial public.

The IPO is projected to fetch a valuation of around $7-8 billion, with a target listing date of December or the end of the current fiscal year, according to reports.

According to reports, HDB Financial Services has hired four investment banks to advise on its initial public offering: Jefferies, JM Financial, Morgan Stanley, and Nomura.

HDB Financial Services, founded in 2007, offers secured and unsecured loans and operates more than 1,680 branches across India.

HDB Financial’s listing follows new guidelines issued by the country’s central bank in 2022, which require significant non-banking financial businesses (NBFCs) to be listed on public exchanges by September 2025.

HDFC Bank reported a profit of ₹16,175 Crore in the first quarter of FY25, a 2% decrease from the previous quarter’s ₹16,511.9 Crore. Net interest income increased by 2.6% during the mentioned quarter.

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