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HDB Financial Services Ltd., a unit of India’s largest private sector lender, HDFC Bank Ltd. plans to raise as much as ₹12,500 crore ($1.5 billion) through an initial public offering (IPO), further adding to big debuts in the nation’s equity markets.
The Mumbai-based bank’s board Saturday approved its unit’s offer for sale of equity shares worth ₹10,000 crore held by the bank and ₹2,500 crore of new shares, according to a stock exchange filing.
The country’s IPO market has become red-hot as rapid economic expansion and rising incomes push the country’s market capitalisation to an unprecedented $5 trillion.
- Also read: HDFC Bank Q2 PAT up 5% on higher NII
Regulators, fearing an overheated market, have tried to tamp down the frenzy. Listings have already raised $8.6 billion this year, more than each of the two preceding years, according to data compiled by Bloomberg. Locals have been putting record money into the market, with foreign investors also turning net buyers of Indian equities this year.
HDFC Bank said the details of the offer will be “determined in due course by the competent body.” HDB Financial will continue to be a unit of HDFC Bank after the IPO.
More stories like this are available on bloomberg.com
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