HDFC Bank board okays HDB Financial’s Rs 12,500 crore IPO

MUMBAI: HDFC Bank‘s board has cleared a Rs 12,500 crore IPO for its subsidiary, HDB Financial Services, as part of the company’s plan to go public. The decision was made during a board meeting held on October 19, 2024, following previous announcements in July and Sept of this year regarding the offer.
The IPO will consist of both a fresh issue and an offer for sale by the bank.The OFS will include shares with a face value of Rs 10 each, aggregating up to Rs 10,000 crore, though this amount may be revised as permitted under applicable law. The fresh issue will amount to Rs 2,500 crore, bringing the total IPO size to Rs 12,500 crore. The proposed IPO size makes it the largest IPO by an NBFC. Last month, Bajaj Housing Finance had raised Rs 6,560 crore through an IPO.
The proposed IPO is subject to market conditions, regulatory approvals, and other considerations. Regulatory clearances are being sought, and the company must adhere to applicable laws, including RBI’s scale-based regulations for NBFCs, which require HDB to go public by Sept 2025.
Despite the IPO, HDB will continue to operate as a subsidiary of HDFC Bank, in compliance with regulatory guidelines. The bank has emphasised that the listing process will ensure that HDB retains its subsidiary status.