This will be the largest offer since Hyundai Motor India’s Rs 27,000 crore issue last year and the biggest for the current calendar. The listing will also mark the entry of another major HDFC Group entity into the public markets, following HDFC Bank and the now-merged HDFC.
The offer includes reservation of subscription for employees and also eligible HDFC Bank shareholders.
HDFC Bank currently owns 94.6% of HDB Financial and will dilute a significant portion of its stake through this offering, as part of broader regulatory and capital optimization objectives.
The IPO will consist of Rs 10,000 crore OFS from parent HDFC Bank and a fresh equity sale of Rs 2,500 crore. The price band will be announced soon.
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HDB Financial Services is a leading non-banking financial company (NBFC), catering to both retail and commercial borrowers. It offers secured and unsecured loans, including personal loans, business loans, vehicle loans, gold loans, and loans against property. The company has built a strong presence across India, particularly in the affordable credit segment for individuals and small businesses.The proceeds from the fresh issue are expected to be used to bolster the company’s capital adequacy and support future lending growth, especially in semi-urban and rural areas.Analysts note that the IPO comes at a time when investor sentiment is upbeat and the primary market is seeing strong activity. The broader Nifty 50 index has rebounded sharply since March, and liquidity remains ample following the Reserve Bank of India’s recent policy stance.
HDB Financial’s IPO will be closely watched by institutional and retail investors alike, given its brand backing, scale, and long-term growth potential.
