HDB Financial Services IPO: Leading private bank HDFC Bank will sell a stake worth about Rs 10,000 crore in the IPO of its unit HDB Financial Services. HDFC Bank holds a 94.6% stake in the company. Under the IPO, new shares worth Rs 2,500 crore will be sold, making the total size of the issue around Rs 12,500 crore. Earlier, the board of HDFC Bank had approved the IPO of HDB Financial.

Listing under RBI regulations

The price band of the shares in the IPO and other details will be fixed in due time. This is the first IPO from HDFC Group in 6 years. The listing of HDB Financial will be done under the new norms introduced by RBI in 2022, under which large non-banking financial companies (NBFCs) are required to be listed on the stock exchange by September 2025.

HDB Financial can use the funds raised from the IPO to expand its loan book and enhance its digital infrastructure.

How are the financial results

HDB Financial Services is a leading NBFC company that primarily serves the retail and commercial segments and offers a wide range of financial products and services.

It specializes in secured and unsecured loans, asset finance, consumer loans, and loans against property. HDB Financial recorded a 17% year-on-year growth in its loan book to Rs 66,000 crore in FY23. This growth was led by strong demand for personal loans, auto loans and small business financing. Meanwhile, the company's profit stood at Rs 1,740 crore in FY23.