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Upcoming IPO: HDFC Bank announced on Saturday, October 19 that it will sell equity shares worth Rs 10,000 crore in its subsidiary HDB Financial Services Limited through an offer for sale (OFS). There is a lot of discussion about this in the IPO market.
This OFS is part of the much-awaited initial public offering (IPO). The total size of the IPO will be Rs 12,500 crore, including a fresh issue of Rs 2,500 crore. Through this, HDB Financial Services is preparing for its public market debut.
Sale will be done through OFS The bank said in its stock exchange filing that the offer for sale (OFS) of HDFC Bank's included shares is subject to market conditions, regulation approval and other considerations. After the IPO, HDB Financial Services will continue to be a subsidiary of HDFC Bank while complying with the necessary regulations. HDB Financial Services, a non-banking financial company (NBFC), serves the retail and commercial sector. Which offers a wide range of products such as personal loans, vehicle loans and loans against property to customers. The IPO will enable HDB Financial Services to meet the listing requirement mandated by the Reserve Bank of India (RBI).
Important information about HDB Financial Services
In October 2022, the RBI had issued a circular requiring “upper layer” NBFCs, including HDB Financial Services, to list on stock exchanges within three years – by September 2025.
HDFC Bank holds a 94.64 per cent stake in HDB Financial Services. It first announced plans to list HDB Financial Services on July 20, 2024, when the board approved starting the listing process. On September 20, the board further approved the IPO, which includes a fresh issue of Rs 2,500 crore and an OFS from existing shareholders.
Reports suggest that the offering could lead to a valuation of $7-8 billion (up to Rs 67,000 crore), potentially making it one of the largest IPOs in recent times. In today’s announcement, HDFC Bank said that the IPO pricing and other details will be finalised in due course.
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