HDB Financial Services Plans Rs 12,500 Cr IPO; HDFC Bank To Sell Rs 10,000 Cr Stake
RBI mandate pushes NBFC to go public while fresh issue of Rs 2,500 crore also planned
HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, India’s largest private sector lender, is set to raise Rs 12,500 crore through an initial public offering (IPO). The move comes as part of regulatory compliance with the Reserve Bank of India’s (RBI) mandate for ‘upper layer’ non-banking financial companies (NBFCs) to list on the stock exchanges.
HDFC Bank, which holds a 94.6 per cent stake in HDB Financial Services, plans to sell Rs 10,000 crore worth of shares through an offer-for-sale (OFS), according to a disclosure made by the bank’s board in an exchange filing on Saturday, 19 October 2024. The remaining Rs 2,500 crore will be raised through a fresh issue of equity shares, with a face value of Rs 10 per share.
"The price and other details of the proposed IPO will be determined in due course by the competent body," the bank’s statement said. Despite the planned share sale, HDB Financial Services will remain a subsidiary of HDFC Bank, as per regulatory requirements.
Founded in 2007, HDB Financial Services is a non-banking financial company (NBFC) offering lending and business process outsourcing (BPO) services to individuals and businesses. Its lending portfolio includes both secured and unsecured loans. The BPO division provides back-office services like forms processing, document verification, finance and accounting services, and correspondence management, as well as front-office services such as contact centre management, outbound marketing, and collections.
HDBFS currently operates over 1,747 branches across 27 states and four union territories in India. It holds CARE AAA and CRISIL AAA ratings for long-term debt and bank facilities, along with an A1+ rating for short-term debt and commercial papers.
