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News Topical, Digital Desk : HDFC Bank subsidiary HDB Financial Services may soon launch its much-awaited ₹12,500 crore IPO by the end of June. This will be the largest ever IPO in India by a non-banking financial company (NBFC). "The UDRHP (updated draft red herring prospectus) has been filed and the red herring prospectus will also be submitted in a few days. The anchor investment date has been fixed as June 24 and the IPO is likely to open between June 25 and June 27," multiple sources told Moneycontrol.
According to the report, another source said that if there is any sudden adverse event, market change or unexpected delay, then these dates may change. The source informed that HDB Financial Services is targeting a post-money valuation of around ₹62,000 crore (about $7.2 billion) for the IPO, which is based on the higher end of the price band. Fresh issue of ₹2,500 crore This IPO includes a fresh issue of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore, which will be done by HDFC Bank. HDFC Bank holds 94.3% stake in HDB. The company filed DRHP in October 2024. On July 20, 2024, the board of HDFC Bank gave in-principle approval to start the listing process of HDB Financial Services and a committee was also formed for this task. As per RBI's October 2022 circular, HDB is an "Upper Layer" NBFC and such companies are required to get listed within three years i.e. by September 2025. According to the DRHP, a total of 12 investment banks have been appointed for this IPO, namely JM Financial, BNP Paribas, BofA Securities, Jefferies, Goldman Sachs, HSBC Securities, Nomura, IIFL Securities, Morgan Stanley, Nuvama, Motilal Oswal and UBS. Cyril Amarchand Mangaldas is the legal counsel of the company. The company will use the funds raised from the fresh issue to increase its Tier-1 capital and meet future capital requirements, especially onward lending.
Read More: The company will raise Rs 4,500 crore through QIP, here is the complete information so far
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