HDFC Bank’s Arm HDB Financial Services Gets SEBI Nod To Raise Rs 12,500 Crore Via Fresh Issue

HDFC Bank's subsidiary, HDB Financial Services has received an approval from capital markets regulator the Securities and Exchange Board of India (Sebi) to raise Rs 12,5000 crore through an upcoming initial public offering (IPO).

HDFC Bank, which is the parent firm, holds a 94.6 per cent in HDB Financial Services Ltd and it will sell shares worth ₹10,000-crore via an offer-for-sale (OFS) as part of the IPO.

This is the HDFC Bank group's first public issue in six years.

HDB Financial Services IPO: Details

Additionally, the existing shareholders will also get some stake in the IPO via an offer for sale, the firm said in an exchange filing, however, the details were not specified.

The initial public offering (IPO) will be a combination of a fresh issue and an OFS with its total issue size at ₹12,500 crore.

The upcoming HDB Financial Services IPO will be for such number of equity shares of face value of Rs 10 each, aggregating up to Rs 12,500 crore comprising a fresh issue of Rs 2,500 crore and the OFS aggregating up to Rs 10,000 crore, the largest private-lender said.

The price as well as other details of the proposed IPO will be determined in due course by the competent body.

After the proposed IPO, HDBFS would continue to be a subsidiary of the Bank, in compliance with the provisions of the applicable regulations, added HDFC Bank.

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