HDB Financial Services IPO: HDFC Bank arm to launch ₹12,500 crore IPO; Parent to sell ₹10k-crore shares through OFS

HDB Financial Services IPO: A subsidiary of HDB Financial Services (HDBFS) Limited, India’s largest private sector lender.hdfc bankplan to increase 12,500 crore through upcoming Initial Public Offering (IPO)Parent firm HDFC Bank, which holds a 94.6 per cent stake in HDB Financial Services Ltd, will sell shares worth Rs 10,000 crore through offer-for-sale (OFS) as part of the IPO.

The Mumbai-based private lender’s board on Saturday, October 19 approved the much-awaited IPO plans for its non-banking financial company (NBFC) arm, adding that the IPO price and other details of the proposed public issue will be determined in due course. Will go. course of time. HDB Financial Services Limited HDFC Bank will continue to be a subsidiary even after the completion of the IPO.

Also read: HDB Financial IPO: HDFC Bank approves plan to raise IPO of subsidiary Rs 2,500 crore through fresh issue plus OFS

HDB Financial Services IPO Details

The HDB Financial Services IPO will be a combination of a fresh issue and an OFS, with a total issue size of 12,500 crores. According to HDFC Bank, the upcoming HDB Financial Services IPO will be for so many equity shares of face value 10 each, total 12,500 crores Contains a recent issue of Rs 2,500 crore and OFS collect up to 10,000 crores.

“We wish to inform you that the Board of Directors of the Bank in its meeting held today i.e. October 19, 2024, considered and approved the OFS of such number of equity shares of face value. Aggregated up to 10 HDBFS each 10,000 crore (subject to any amendment in the amount admissible under applicable law) to be placed by the Bank, subject to applicable law, market conditions, receipt of necessary approvals/regulatory clearances and other considerations, in the proposed IPO.

Also read: Why did HDFC Bank reject MUFJ proposal on HDB Financial?

Accordingly, the IPO will be for such number of equity shares of face value Aggregated up to 10 HDBFS each Involves a fresh issue of such number of equity shares of face value of Rs 12,500 crore Aggregated up to 10 HDBFS each An OFS of Rs 2,500 crore and such number of equity shares of face value Aggregated up to 10 HDBFS each 10,000 crore,” HDFC Bank said in a regulatory filing to stock exchanges today.

“The price and other details of the proposed IPO will be determined by the competent body in due course. Please note that post the proposed IPO, HDBFS will continue to be a subsidiary of the Bank in compliance with the provisions of the applicable regulations,” HDFC Bank added.

Last month HDFC Bank had approved the increase The IPO, raising Rs 2,500 crore through the issue of shares, is the banking group’s first public floating in six years. Following the proposed IPO, HDB Financial Services will continue to be a subsidiary of the Bank in compliance with the provisions of applicable regulations.

Also read: HDB Financial IPO in the works as HDFC prepares stage to list NBFC arm

hdb financial services details

Established in 2007, HDB Financial Services offers secured and unsecured loans and has over 1,680 branches across India. HDB Financial Services closes June quarter with net assets of approx 13,300 crores.

The listing of NBFCs follows the new norms of the central bank. The decision to list HDB Financial Services follows the Reserve Bank of India (RBI) order in October 2022, which requires NBFCs in the upper tier to be listed on stock exchanges.

Earlier today HDFC Bank also announced its July-September quarter results for the financial year 2024-25 (Q2FY25)Without any dividend. The quarter marks the first time that HDFC’s year-on-year (YoY) numbers are comparable since the merger with parent Housing Development Finance Corp (HDFC) was completed in July 2023. On Friday, shares of HDFC Bank closed 0.47 per cent higher. Rs 1,681.15 per share on BSE.