• Source:JND
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HDB Financial Services IPO: HDB Financial Services, a subsidiary of HDFC Bank, has submitted preliminary papers with capital markets regulator Sebi to raise Rs 12,500 crore through an initial public offering (IPO). The proposed IPO is a mix of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by promoter HDFC Bank, according to a draft red herring prospectus (DRHP) filed on Wednesday.

HDFC Bank currently holds a 94.36 per cent stake in HDB Financial Services, the bank’s non-banking financial company (NBFC) arm. The company intends to use the proceeds from the fresh issue to strengthen its tier-I capital base. This will help meet future capital requirements, including additional debt, to support business growth.

The decision to list HDB Financial Services follows a Reserve Bank of India (RBI) order in October 2022 requiring upper-tier NBFCs to list on the stock exchange within three years. Earlier this month, the board of HDFC Bank approved the sale of shares worth Rs 12,500 crore, including a Rs 10,000 crore offer for sale (OFS) involving its subsidiary HDB Financial Services.

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Following the proposed IPO, HDB Financial Services will remain a subsidiary of the bank, subject to the provisions of applicable regulations, it added. HDB Financial Services closed the June quarter with assets of around Rs 13,300 crore.

Lead managers running dozens of books -- JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities & Capital Markets (India) Pvt Ltd, IIFL Securities, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisor, Nomura Financial Advisory & Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India -- will manage the company's IPO.

(With Agencies Input)

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