This HDFC Bank subsidiary might launch its $1.5B IPO soon
What's the story
HDB Financial Services Ltd, a subsidiary of HDFC Bank, is on the verge of getting regulatory approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The move could see the lender launch one of India's biggest listings this year. If successful, it could raise as much as $1.5 billion as per Bloomberg, marking a major milestone in India's financial sector.
Impact
A test for the Indian market
The approval from SEBI would be a major step forward for HDB Financial, which has been waiting for regulatory clearance. The move comes at a time when the Indian IPO market is trying to regain its former glory. Last year, India was one of the world's busiest destinations for new listings. If successful, this IPO could be largest ever for a shadow bank in India and the biggest across all sectors since Hyundai Motor India's $3.3 billion deal in 2024.
Upcoming listings
Tata Capital also planning an IPO
HDB Financial's upcoming IPO is expected to be followed by even bigger ones. Tata Capital, another major player in the Indian financial sector, has already filed preliminary documents with India's markets regulator last month for an IPO that could raise as much as $2 billion. This move further indicates a possible revival of the Indian listing scene after a period of market turmoil caused by slowing economic growth and US tariffs.