After the listing of Bajaj Housing Finance, big news has come regarding the IPO of the subsidiary of the country’s largest bank. The subsidiary of private bank HDFC Bank is also preparing to bring an IPO. HDFC Bank’s subsidiary, HDB Financial Services is planning an IPO of new equity shares worth up to ₹2,500 crore, which also includes an offer for sale (OFS) through existing and eligible shareholders. The company has received approval from the board.
Statement from HDB Financial Services
HDB Financial Services said in a statement that the IPO is subject to the approval of the company’s shareholders, market conditions, necessary approvals from the regulator and other factors. According to reports, the IPO is expected to achieve a valuation of around $ 78 billion and its target is to be listed by December or the end of the current financial year.
HDFC Bank,
HDFC Bank, which holds a 94.64% stake in its subsidiary non-banking financial company HDB Financial Services, is in the process of shortlisting bankers for the issue. According to a Moneycontrol report, HDB Financial Services has appointed four investment banks as advisors for its IPO, including Jefferies, JM Financial, Morgan Stanley and Nomura.
Listing of upper layer (NBFC-UL) is mandatory as per the circular issued by the Reserve Bank of India in October 2022. According to RBI, all “upper level” NBFCs are required to be listed within three years of receiving the notification. On the same lines, Bajaj Housing Finance also recently entered the market.