HDFC Bank owns 94.7% of HDB Financial Services. It plans to dispose 10% stake of the same in IPO. If, so HDB Financial Services IPO can lead to an issue size between ₹7,500 and 10,000 crore.
According to the ET(Economic Times), India’s biggest private lender, HDFC Bank, has begun planning for its subsidiary HDB Financial Services. It is among much-anticipated initial public offering (IPO).
A investment banker source says, HDB Financial services, a non-deposit-taking lender, might be valued between $9 billion and $12 billion (₹75,000 crore to ₹1 lakh crore). However, it depends on market conditions. HDFC Bank owns 94.7 per cent of its arm. It plans to sell a 10% interest in the IPO, which may raise between ₹7,500 and ₹10,000 crores. Furthermore, HDFC Bank is looking into a pre-IPO share placement with investors.
It said HDFC Bank had contacted renowned investment banks to solicit bids and valuations for the proposed IPO.
HDFC Bank plans to begin the share sale for its non-banking financial services arm in the fourth quarter of 2024. Or else it can come in the first quarter of 2025. If the IPO takes place in 2024, it might be one of the year’s most significant listings. Further, the first IPO from the amalgamated HDFC Bank and HDFC organization.
All About HDB Financial Services IPO
HDB’s IPO is significant since the business must list before September 2025 to meet the Reserve Bank of India criteria. As of March 31, 2023, the firm runs 1,492 branches nationwide and is one of largest publicly traded finance organizations.
On January 17, HDFC Bank’s CFO stated that the bank had until September 2025 to list HDB Financial Services. He then noted that preliminary work on the IPO would commence shortly.
The company generated ₹12,403 crore in revenue from business and ₹1,959 crore in profit after tax over the same year. HDB primarily provides automobile, property, and personal and home loans.
Brokers expect a robust listing for HDB Financial, citing the company’s track record of success and solid parentage. The excitement surrounding the IPO has already been reflected in HDB shares. It have risen more than 30% on the unlisted market in the last three months, raising hopes for good launch.
