NEW DELHI: HDB Financial Services, an HDFC Bank subsidiary, has submitted draft documentation to Sebi for raising Rs 12,500 crore through an IPO. The offering consists of Rs 2,500 crore in fresh equity shares and Rs 10,000 crore through an OFS by HDFC Bank, as detailed in the Draft Red Herring Prospectus (DRHP) submitted on Wednesday. Currently, HDFC Bank maintains a 94.36 percent ownership in this NBFC subsidiary.
The fresh issue proceeds will be used to enhance the company’s Tier-I capital base, supporting future capital requirements and business expansion through increased lending capabilities.
The listing initiative aligns with RBI’s October 2022 directive, which requires upper layer NBFCs to achieve stock exchange listing within a three-year timeframe.
HDFC Bank’s board gave approval for the Rs 12,500 crore share sale, including a Rs 10,000 crore OFS for HDB Financial Services, earlier this month.
Twelve book-running lead managers has been appointed to oversee HDB Financial Services’ IPO. This includes prominent financial institutions such as JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Securities, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India.
Post-IPO, HDB Financial Services will remain under the bank’s control as a subsidiary, adhering to applicable regulatory requirements.
Incorporated in 2007, HDB Financial Services is a prominent player in India’s non-banking financial company (NBFC) sector providing services like lending and BPO services. It reported a net worth of approximately Rs 13,300 crore at the end of the June quarter.