HDB Financial mulls $1.5 billion IPO as HDFC Bank moves to sell shares

HDB Financial Services, a subsidiary of India’s largest private lender HDFC Bank , has announced plans to raise up to Rs 12,500 crore in its upcoming initial public offering ( IPO ).

HDFC Bank , which owns a 94.6 per cent stake in HDB Financial, will be selling shares valued at Rs 10,000 crore as part of offering. bank indicated that price and ditional details for IPO will be finalised in due course. This move marks HDFC Bank's first public float in six years, following approval to raise 25 billion rupees through issuance of shares for IPO.

Founded in 2007, HDB Financial Services specialises in providing both secured and unsecured loans and operates a network of over 1,680 branches across India. planned listing comes in response to new regulations set by Reserve Bank of India in 2022, which mandate that large non-banking financial companies (NBFCs) must list on stock exchanges by September 2025.

So far this year, around 269 companies in India have raised over $12.57 billion through IPOs, surpassing total of $7.42 billion raised in all of 2023. This surge has elevated India’s share in Asia’s equity capital market deals to a record high.

Earlier this year, Bajaj Housing Finance me helines with its IPO , which was driven by new listing requirements and has been one of standout offerings in a robust Indian IPO market.

ditionally, Hyundai Motor India’s $3.3 billion IPO this week was oversubscribed by more than two times, showcasing strong interest from institutional investors, despite concerns regarding pricing that limited retail participation.

(With Reuters inputs.)