HDB Financial Services Ltd. has filed a draft papers with SEBI, aiming to raise up to ₹12,500 crore through an initial public offering (IPO). This IPO will include a combination of a fresh issue worth ₹2,500 crore and an offer for sale by its promoter, HDFC Bank, which plans to divest ₹10,000 crore worth of shares. HDFC Bank currently holds a 94.6% stake in HDB Financial Services, which will remain its subsidiary post-IPO.
The primary motivation for this IPO is a mandate from the Reserve Bank of India requiring large non-banking financial companies (NBFCs) to list on stock exchanges by the 2025 financial year. Funds raised from the fresh issue will be allocated toward IPO expenses, increasing Tier I capital, and addressing future capital needs.
Leading financial institutions, including JM Financial Ltd., BNP Paribas, Goldman Sachs, and Morgan Stanley, will serve as lead book-running managers for this IPO. HDB Financial Services is also exploring the possibility of a pre-IPO placement with these managers. The final offer price, price band, and minimum bid size will be set in consultation with them.
Upon the IPO’s conclusion, HDB Financial Services will be listed on both the NSE and BSE. Founded in 2007, HDB Financial Services is recognized as a diversified, retail-focused NBFC, classified by the RBI as an upper-layer NBFC. As of September 30, its gross loan book reached ₹98,620 crore, with a compound annual growth rate (CAGR) of 20.93% over the last two years. For FY 2023–24, it reported a profit of ₹2,460 crore, with an impressive CAGR of 55.98% between FY 2022 and FY 2024.