HDFC Bank's arm HDB files for ₹12,500 crore IPO

The HDB Financial Services IPO comprises a fresh issue of equity shares worth ₹2,500 crore and an offer for sale (OFS) of equity shares worth ₹10,000 crore

Updated on: Oct 31, 2024, 14:41:09 IST

By HT News Desk

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HDB Financial Services Limited has filed its draft red herring prospectus (DRHP) for a ₹12,500 crore Initial Public Offering (IPO), its parent company HDFC Bank Ltd announced in an exchange filing today on Thursday, October 31, 2024.

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The non-banking financial company (NBFC) IPO comprises of a fresh issue of equity shares worth up to ₹2,500 crore and an offer for sale (OFS) of equity shares worth ₹10,000 crore, according to the exchange filing.

This follows the Reserve Bank of India's (RBI) mandate which requires ‘upper layer’ NBFCs to mandatorily go public and get listed on the stock exchanges.

As a result, Bajaj Housing Finance went public and got listed in September this year, emerging as a prominent example in India's huge IPO market this year.

What does HDB Financial Services do?

HDB Financial Services, incorporated in 2007, provides lending and business process outsourcing (BPO) services to individuals and businesses.

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The lending involves both secured and unsecured loans and the BPO services include back office services like forms processing, document verification, finance and accounting services, and correspondence management, along with front office services like contact center management, outbound marketing and collection services, according to its official website.

It currently has more than 1,747 branches spread across 27 states & 4 union territories and is CARE AAA & CRISIL AAA rated for its long-term debt and bank facilities and A1+ rated for its short-term debt & commercial papers.

How did HDFC Bank's shares perform?

HDFC Bank Ltd shares were trading at ₹1,729 on the Bombay Stock Exchange as at 2:40 pm IST today on Thursday, October 31, 2024. This was a drop of 0.35% or 6 points.

The announcement through the exchange filing came at 9:22 am on the same day.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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