HDFC Bank to Sell Shares in HDB Financial Services for IPO listing

New Delhi: HDFC Bank's board has approved a share sale totaling Rs 12,500 crores. This includes an Offer for Sale (OFS) of Rs 10,000 crores related to its subsidiary, HDB Financial Services.

The initial public offering (IPO) will consist of equity shares with a face value of Rs 10 each for HDB Financial Services, amounting to a total of Rs 12,500 crores. This includes a fresh issue of Rs 2,500 crores and an OFS of up to Rs 10,000 crores, as stated by HDFC Bank in a regulatory filing.

The price and other details of the proposed IPO will be determined in due course by the competent body, it said. After the proposed IPO, HDB Financial Services will continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations, it added.

HDFC Bank holds a 94.64 percent stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank. The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges.