IPO
HDFC Bank subsidiary HDB Financial Services has filed preliminary documents with capital markets regulator SEBI to raise Rs 12,500 crore through an initial public offering (IPO). According to documents filed with the Securities and Exchange Board of India (SEBI) on Wednesday, the proposed IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by promoter HDFC Bank. Currently, HDFC Bank holds 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank.
Where will the company use the money received from IPO?
The company proposes to use the proceeds from the fresh issue to strengthen its Tier-1 capital base. This will support future capital requirements including additional borrowings to support business growth. The decision to list HDB Financial Services follows the Reserve Bank of India’s order in October, 2022, which requires upper-tier NBFCs to be listed on the stock exchange within three years.
Approval was given this month
This month, the board of directors of HDFC Bank had approved share sale of Rs 12,500 crore, including an offer for sale (OFS) of Rs 10,000 crore, related to its subsidiary HDB Financial Services. Following the proposed IPO, HDB Financial Services will continue to be a subsidiary of the Bank in compliance with the provisions of applicable regulations.
Brigade Hotel Ventures files documents
Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed preliminary documents with capital markets regulator SEBI to raise Rs 900 crore through an initial public offering (IPO). According to documents filed with the Securities and Exchange Board of India (SEBI), the proposed IPO is entirely based on fresh issue of equity shares and there is no offer for sale (OFS). While Rs 481 crore of the issue proceeds will be used to repay debt, Rs 412 crore will be allocated to the company and Rs 69 crore will be allocated to its key subsidiary SRP Prosperita Hotel Ventures Limited. Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from promoter BEL, and the remaining funds will be used for acquisitions, other strategic initiatives and general corporate purposes. The company can raise up to Rs 180 crore through pre-IPO. If planning is done, the issue size will be reduced.
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