On September 23, HDFC Bank's stock increased by about one percent to Rs 1,754 per share following the board's in-principle approval of the bank's plan to go public with an IPO of HDB Financial Services, the financial services division. In addition to a new equity issue of Rs 2,500 crore, the IPO will have an offer-for-sale (OFS) section that would enable current owners to sell their holdings.
According to sources, the offering is anticipated to bring in a valuation of between $7 and $8 billion, and it may go public by December or the end of the current fiscal year.
As per the earlier September report, the shortlist includes local companies like ICICI Securities, Axis Capital, and IIFL, and foreign corporations like Morgan Stanley, Bank of America, and Nomura.
Since HDB Financial Services is classified as a "Upper Layer" NBFC in accordance with the Reserve Bank of India's October 2022 regulation, the IPO is required by law. last permission follows Bajaj Housing Finance's successful IPO, which last week saw its market capitalization reach Rs 1.4 lakh billion.
Leading non-banking financial firm HDB Financial Services offers a broad range of financial products and services, including consumer loans, loans against property, asset finance, secured and unsecured lending, and principally to the retail and commercial sectors.
The NBFC claimed that the high demand for personal, auto, and small company loans led to a 17% year-over-year increase in its loan book for FY23, which reached Rs 66,000 crore.
While net interest income increased by 2.6% over the same period, HDFC Bank posted a net profit of Rs 16,175 crore in the first quarter of FY25, a 2% decrease from the Rs 16,511.9 crore in the previous quarter.
