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HDB Financial IPO: HDFC Bank subsidiary HDB Financial Services has applied to capital market regulator SEBI to raise Rs 12,500 crore through IPO. According to the documents filed with SEBI, new equity shares worth Rs 2,500 crore will be issued in the IPO, while promoter HDFC Bank will sell shares worth Rs 10,000 crore through an offer for sale. Thus, the total IPO size will be Rs 12500 crore.
How much stake does HDFC Bank have?
HDFC Bank currently holds a 94.36 percent stake in HDB Financial Services, a non-banking finance company (NBFC) unit of the bank. The company proposes to use the funds raised from the new issue to strengthen its tier-1 capital base.
This will support future capital requirements, including additional borrowings to support business growth.
HDB Financial Services will remain a subsidiary of the bank
The decision to list HDB Financial Services follows a Reserve Bank of India order in October 2022 mandating that top-tier NBFCs be listed on the stock exchanges within three years.
After this IPO, HDB Financial Services will continue to be a subsidiary of the bank in compliance with the provisions of applicable regulations.
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