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The board of directors of HDB Financial Services—the non-bank arm of HDFC Bank—has approved raising up to ₹2,500 crore via fresh issue of shares in its proposed initial public offering (IPO), subject to shareholder approval.
The issue has an offer for sale option by existing and eligible shareholders of the NBFC, who may offer to tender their shares, subject to regulatory approvals, according to an exchange filing by HDFC Bank.
HDFC Bank had in July provided an in-principle approval to initiate the process of listing of equity shares of HDB Financial Services. The lender holds 94.64 per cent stake in HDB Financial Services.
Incorporated in 2007, HDB Financial provides secured and unsecured loans and has more than 1,747 branches across India. HDB Financial Services is in the upper layer NBFC category specified by the Reserve Bank of India (RBI). Upper layer NBFCs are required to be listed by September 2025.
According to reports, the IPO is expected to fetch a valuation of roughly around $7–8 billion, with a target listing by December or by the end of the current financial year. Shares of HDFC Bank ended trading 2 per cent higher at ₹1,742 apiece on the BSE today.
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