HDFC Bank unit HDB Finance IPO: The IPO of HDB Financial Services Limited, a non-banking subsidiary of private sector HDFC Bank, is about to be launched. The plan for this IPO has been approved by the board of HDB Financial Services. The IPO will include a fresh equity issue of Rs 2500 crore and an offer for sale by existing shareholders. HDFC Bank holds a 94.64 percent stake in HDB Financial Services.
IPO expected by March 2025
According to media reports, the IPO is likely to hit the market by the end of the current financial year. This means that the IPO will come by March 2025. The process of shortlisting bankers for this issue is underway. Foreign banks like Morgan Stanley, Bank of America and Nomura have been shortlisted along with domestic companies like ICICI Securities, Axis Capital and IIFL.
HDFC Bank is seeking a valuation of Rs 78,000-87,000 crore for HDB Finance. The bank may sell 10-15 per cent of its stake in this IPO, potentially raising Rs 7,800-8,700 crore, which will increase its capital adequacy.
Why the decision was taken
The decision to list HDB Financial Services came after the Reserve Bank’s order in October 2022, which made listing mandatory for non-banking financial companies (NBFCs) with conditions. For this reason, Bajaj Housing Finance’s IPO has also come. Let us tell you that Bajaj Housing Finance’s IPO had a bumper listing. This IPO doubled the investors’ money on the listing day.
share status
Talking about HDFC Bank shares, it closed at Rs 1742.15, up about 2 per cent. During trading, the share price reached Rs 1745. On July 3, 2024, the share price was at Rs 1,791.90. This is the 52-week high of the stock. On February 14, 2024, the stock was at Rs 1,363.45. This is the 52-week low of the stock.
