HDFC Bank announced on October 19 announced that it will sell shares worth Rs 10,000 crore through an initial public offering (IPO) in its subsidiary, HDB Financial Services Ltd. The IPO will comprise of a fresh share sale and an offer for sale option. The total IPO size will amount to Rs 12,500 crore, including a fresh issue of Rs 2,500 crore.
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The much-anticipated IPO of the unit is expected by the end of the current financial year. The offer for sale (OFS) of shares held by HDFC Bank is subject to market conditions, regulatory approvals, and other considerations, the bank said in a stock exchange filing on October 19. Post share sale, HDB Financial Services will remain a subsidiary of HDFC Bank, complying with relevant regulations.
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Currently, HDFC Bank holds 94.64 percent stake in the company. The lender was required to list HDB financials by September 25 as per regulatory requirements.
HDB Financial Services, is a non-banking financial company (NBFC), and serves the retail and commercial segments, offering a wide range of products such as personal loans, vehicle loans, and loans against property.
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The Reserve Bank had 15 upper-layer NBFCs as of September 2023, and according to new law, the unlisted companies were required to be listed within three years. Other unlisted lenders in the list include Tata Capital Financial Services and Piramal Capital & Housing Finance.
The net profit of HDB Financial Services declined by 1.63% to Rs 591.00 crore in the quarter ended September 2024 compared to Rs 600.80 crore during the previous quarter ended September 2023. The NBFC recorded 13.97 percent gain in sales in Q2FY25 at Rs 4,006.80 crore compared to Rs 3,515.70 crore during Q2FY24.
