Business News Desk – HDB Financial Services Limited, a non-banking subsidiary of private sector HDFC Bank, has approved the IPO plan. HDFC Bank has told the stock markets that the IPO will consist of new shares worth Rs 2,500 crore issued, as well as an offer for sale from existing shareholders. Apart from this, there will also be shareholder quota. This IPO can come to the market by December this year or by the end of FY 2024-25.
HDB Financial Services provides personal loans, gold loans, business loans, auto loans, etc. HDFC Bank holds a 94.64 per cent stake in the company. The bank is shortlisting bankers for this public issue. In September itself, a Moneycontrol report said that foreign banks like Morgan Stanley, Bank of America and Nomura as well as domestic firms like ICICI Securities, Axis Capital and IIFL have been shortlisted. HDFC Bank is seeking a valuation of Rs 78,000-87,000 crore
HDFC Bank is seeking a valuation of Rs 78,000-87,000 crore for HDB Financial Services. In this IPO, the bank can sell its 10-15 per cent stake, which can raise Rs 7,800-8,700 crore. This will strengthen the capital adequacy ratio of the bank. As of June 2024, HDFC Bank’s capital adequacy ratio was 19.3 per cent.
HDB Financial Services is also an upper layer NBFC
The Reserve Bank of India has notified HDB Financial Services in the upper layer NBFC category. As per the rules, upper layer NBFCs are required to be listed on the stock exchanges within 3 years of being notified in this category. On September 9, diversified NBFC Bajaj Housing Finance had a blockbuster listing on the stock market and the IPO investors’ money doubled in one go.
