HDB Financial Services files draft papers with Sebi for Rs 12,500 crore IPO

HDB Financial Services, a subsidiary of HDFC Bank, has filed preliminary papers with superior markets regulator Sebi to rise Rs 12,500 crore done an archetypal nationalist offering (IPO).

The projected IPO is simply a operation of a caller contented of equity shares worthy Rs 2,500 crore and an Offer-for-Sale (OFS) of Rs 10,000 crore by promoter HDFC Bank, according to the draught reddish herring prospectus (DRHP) filed connected Wednesday.

At present, HDFC Bank holds 94.36 per cent involvement successful HDB Financial Services, a non-banking fiscal institution (NBFC) limb of the bank.

The institution proposes to utilize the proceeds from the caller contented to fortify its Tier-I superior base. This volition enactment aboriginal superior needs, including further lending, to enactment concern growth.

The determination to database HDB Financial Services follows the Reserve Bank of India's mandate successful October 2022, requiring NBFCs successful the precocious furniture to database connected the banal exchanges wrong 3 years.

Earlier this month, HDFC Bank's committee approved a stock merchantability worthy Rs 12,500 crore comprising Rs 10,000 crore connection for merchantability (OFS) related to its subsidiary HDB Financial Services.

After the projected IPO, HDB Financial Services volition proceed to beryllium a subsidiary of the bank, successful compliance with the provisions of the applicable regulations, it added.

HDB Financial Services closed the June 4th with a nett worthy of astir Rs 13,300 crore.

A twelve book-running pb managers -- JM Financial, BNP Paribas, BofA Securities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India) Pvt Ltd, IIFL Securities, Jefferies India, Morgan Stanley India Company, Motilal Oswal Investment Advisors, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management, and UBS Securities India -- volition negociate the company's IPO.