HDFC Bank subsidiary gets SEBI nod for ₹12,500cr IPO
What's the story
HDB Financial Services (HDBFS), a subsidiary of HDFC Bank, has received the green light from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO).
The company plans to raise ₹12,500 crore through this IPO.
The offer will be a mix of fresh issuance and an offer for sale (OFS), with HDFC Bank selling shares worth ₹10,000 crore in the latter.
Stake
HDFC Bank owns 94.6% stake in HDBFS
HDFC Bank, which owns a 94.6% stake in HDBFS, will be selling shares.
Other shareholders of the company will also be selling some of their stakes through this IPO.
The total size of the issue is pegged at ₹12,500 crore with a fresh issue component worth ₹2,500 crore and an OFS component aggregating up to ₹10,000 crore.
Company profile
HDBFS offers secured and unsecured loans
Founded in 2007, HDBFS offers secured and unsecured loans through a network of over 1,680 branches across India.
The company has a net worth of around ₹13,300 crore.
The decision to list HDBFS comes after RBI's directive in October 2022 for upper-layer non-banking financial companies (NBFCs) to get listed on stock exchanges.
Regulatory nod
SEBI also approved IPOs of 5 other companies
Along with HDBFS, SEBI has also approved the draft papers of five other companies. These include Vikram Solar and Dorf-Ketal Chemicals. The others are A-One Steels India, Shanti Gold International, and Shreeji Shipping Global. The approval means these companies can launch IPOs within a year.