HDFC Bank arm affirms fresh issue of Rs 2,500 crore and OFS

The Board of HDB Financial Services, a subsidiary of HDFC Bank has given the green light to the lender to launch an initial public offering (IPO).

HDB Financial IPO will be a fresh issuance of equity shares valued at Rs 2,500 crore and an offer-for-sale (OFS) component by existing shareholders.

On Friday, September 20, the company announced that it had approved an initial share sale of equity shares with a face value of Rs 10 each. This includes a fresh issue of equity shares totaling up to Rs 2,500 crore, and an offer for the sale of equity shares by existing eligible shareholders of the company.

However, this is subject to approval by the company's shareholders, market conditions, receipt of applicable approvals, regulatory clearances, and other considerations.

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HDFC Bank currently holds a 94.6% stake in HDB Financial and is in the process of shortlisting bankers for the public offer. Morgan Stanley, Nomura, Bank of America, Axis Capital, IIFL, and ICICI Securities have been shortlisted.

HDB Financial Services is a leading non-banking financial company (NBFC) that provides personal loans, business loans, and vehicle loans, among other financial products.

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