HDB Financial Services Ltd., a leading non-banking financial company (NBFC) in India, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹12,500 crore through an initial public offering (IPO).
The IPO will consist of both a fresh issue of shares and an offer for sale (OFS). As part of the fresh issue, HDB Financial Services will offer equity shares with a face value of ₹10 each, aggregating to ₹2,500 crore. Additionally, the promoter, HDFC Bank, plans to divest shares worth ₹10,000 crore through the OFS route.
This IPO marks a significant milestone for HDB Financial Services and its parent company, HDFC Bank, as it aims to unlock value from its subsidiary. HDB Financial Services has established itself as a prominent player in India’s NBFC space, offering a range of products, including loans, insurance, and asset management services.
The proceeds from the fresh issue are expected to be utilized to bolster the company’s capital base and support its future growth plans.
Market analysts are closely watching this IPO, given the strategic importance of HDB Financial Services within the HDFC ecosystem. With a robust track record and a diversified product portfolio, the company is poised to attract significant investor interest.
The timeline for the IPO and other details, including the price band, will be announced after obtaining SEBI approval.
HDB Financial Services’ public offering comes at a time when the Indian capital market is witnessing increased activity, reflecting strong investor sentiment. This IPO is anticipated to be one of the largest in the financial services sector in recent times.